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FRANKFURT: BMW stuck to its outlook even as second quarter earnings fell 48%, hit by the rising cost of manufacturing, currency headwinds and emissions limits.

BMW said its earnings before interest and taxes (EBIT) fell to 2.79 billion euros in the second quarter.

The Munich-based company said the operating margin at its automotive division fell to 6.5%, down from 8.6% a year earlier, despite a 1.5% rise in vehicle sales during the same period.

BMW reiterated that it expects a significant decrease in group profit before tax in 2019 as well as a slight increase in vehicle deliveries, and an EBIT margin of between 4.5% to 6.5% in the automotive division.

Copyright Reuters, 2019

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