( Updated: )
FRANKFURT: BMW on Wednesday (Aug 5) said it expected to publish an operating revenue for the complete year regardless of coronavirus lockdowns pushing the carmaker to a second-quarter operating loss as shipments of high-end vehicles fell by 25 per cent throughout the duration.
The Munich-based carmaker stated it swung to a EUR666 million (US$786 million) loss before interest and taxes in the quarter ending in June, below a EUR2.2 billion operating profit in the quarter a year earlier.
The revenues prior to interest and taxes (EBIT) margin in the company’s vehicle sector was pushed to an unfavorable 10.4 per cent in the quarter, plunging from 6.5 per cent in the 2nd quarter last year, as BMW ramped up expensive electrical automobile technology investments.
” We are now looking ahead to the 2nd six-month duration with cautious optimism and continue to target an EBIT margin in between 0 per cent and 3 per cent for the vehicle segment in 2020,” Chief Executive Oliver Zipse stated in a declaration.
In May, the automaker alerted it would publish a 2nd quarter loss and slashed its outlook, forecasting an automotive margin on EBIT of 0 percent to 3 per cent this year, versus the 2 percent to 4 percent seen before the pandemic.