The German automaker BMW has published a quarterly operational loss for the first time since 2009. The company was once again hit hard by the corona crisis that interferes with car sales worldwide. In Europe in particular, the demand for cars has been reduced due to temporarily closed factories and showrooms.
BMW closed the second quarter with a 22.3 percent lower turnover of 19.9 billion euros. In addition, the automaker wrote an operational loss (ebit) of 666 million euros. A year ago, there was an operating profit of EUR 2.2 billion. Under the line, BMW was this time in deficit of 212 million Euros, where a net profit of 1.5 billion euros was recorded a year ago.
BMW’s car sales, an important measure closely monitored by market experts, have fallen by almost a quarter over the past six months to 962,575. In Europe, Germany and the United States, demand fell the hardest, around 30%. In China, where in the first quarter the largest decline in sales took place, demand significantly improved from april onwards. In the end, car sales fell by ‘only’ 6 percent in the first half of the year.
In spite of the loss, BMW holds on to the expectation of a gross profit margin between 0 and 3 percent for the Automotive branch in the whole year. The company also wants to continue to invest in innovation and development and will provide more than EUR 30 billion up to 2025.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.
