BERLIN (Reuters) – BMW on Thursday reported a lower than expected profit margin in its core automotive segment during the second quarter, as heightened competition and weaker demand in China weighed on the luxury carmaker’s sales.
The German automaker’s earnings before interest and taxes (EBIT) margin in its car segment fell to 8.4% from 9.2% in the same period last year, falling short of the 8.7% expected by analysts, according to a company-compiled consensus.
BMW also pointed to a consistently high level of investment, with the carmaker’s record spending on model revamps and electric vehicles expected to peak this year.
The company confirmed its guidance for 2024, flagging a slight decrease in the group’s pre-tax earnings due to higher costs related to research and development, manufacturing and personnel.
BMW expects the economic situation in China to stabilise in the third quarter, it said in a statement.
(Reporting by Rachel More, Editing by Miranda Murray)
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