BMW reports plunge in Q2 profits but sees rebounds in China

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BMW reports plunge in Q2 profits but sees rebounds in China

Munich-based German multinational luxury automaker Bayerische Motoren Werke AG, commonly dubbed as BMW AG, had reported $250 million in operational losses over the second quarter of the year on Wednesday as the pandemic-driven forced business closures had slashed the German vehicle maker’s sales by a quarter on Q2, 2020, however, the luxury carmaker said it was experiencing a rebound in demands in China, its largest market by sales.

In point of fact, according to BMW AG’s second-quarter earnings’ report published earlier on Wednesday, the German carmaker which had begun its voyage as an aircraft engine maker back in the 1916s, had reported a quarterly loss of €212 million ($250 million) compared to a profit of €1.48 billion at the same time a year earlier.

BMW cautiously optimistic over the second half of the year

Meanwhile, adding that the company had resumed operations at all of its production lines and the Munich-based luxury carmaker employing over 125,000 workers across the globe was “cautiously optimistic” over the second half of the year, BMW Chief Executive Oliver Zipse said in a post-earnings call with the reporters, “Our swift responsiveness and consistent management strategy enabled us to limit the impact of the corona pandemic during the first half of the year.

” Apart from that, the company had also added at its quarterly earnings’ report that it was witnessing a sharp rebound in demands in China, the world’s largest auto market, and had seen its sales rising by 17 per cent over the second quarter compared to the same time a year earlier.

Nonetheless, overall the carmaker’s sales were pummelled by a quarter to 485,500 units under BMW, Rolls-Royce and Mini brands, while the German carmaker’s revenues fell by 10 per cent to €43.2 billion, though the carmaker had kept its full-year profit forecast unchanged adding that its operational profit margin at its auto business would be between zero to three per cent.

Shares’ prices of the Frankfurt-listed BMW AG winded down the day 3.46 per cent lower to €56.13 apiece after falling as much as 2.5 per cent in the pre-market trading.