BMW earnings drop 28% over higher costs for investments

BMW earnings drop 28% over higher costs for investments

PanARMENIAN.Net - German luxury automaker BMW AG says earnings fell 28 percent in the second quarter due to higher costs for investments in new technology, and after a large one-time plus from the year-ago quarter affected the comparison, AP said.

Net profit fell to €1.28 billion ($1.57 billion) from €1.77 billion a year ago. Sales rose 7 percent to €19.2 billion.

The company said Wednesday that higher costs for new technologies, vehicle development and personnel played a role in the earnings decrease. It also said that the previous year's quarter had seen record earnings boosted by €464 million in one-time additions to earnings.

The company reported record sales of 475,000 vehicles and said its profit margins remained at a strong 11.6 percent.

 Top stories
Total underground mineral resources comprised 4.3 million tons of ore, averaging 4.2 grams per ton for 0.6 mln ounces of gold equivalent.
For those with a monthly consumption of 10 thousand cubic meters or more, the current price of $276.98 would be reduced to $257.56.
The PM said the impact of the agreement on ordinary consumers will be announced once relevant authorities consider the issue.
Azerbaijan is highly dependent on oil revenues and its preliminary 2016 budget indicates reductions in military spending, the report says.
Partner news