BMW profit rises more than expected on new 5-Series sedan – News & Observer
German luxury automaker BMW says net profit rose 14 percent in the second quarter as earnings were boosted by the new version of the 5-Series sedan.
Profit rose to 2.21 billion euros ($2.60 billion) in the April-June period from 1.95 billion euros a year earlier. The profit figure beat analyst expectations for 2.01 billion euros as compiled by financial information provider FactSet. Revenues rose 7.4 percent to 49.2 billion euros.
CEO Harald Krueger said Thursday strong earnings will ensure the company can expand its efforts in battery-powered and autonomous cars. Krueger said “huge changes lie ahead in the world of mobility and it is vital that our company is in top shape to tackle them.”
Electric cars remain a small part of the market but automakers say they will become increasingly important as battery range improves, and as governments press for more low-emissions vehicles as part of efforts to fight climate change and air pollution.
BMW AG sold 42,600 electric vehicles in the quarter, up 80 percent. The company makes the i3 and i8 battery vehicles and sells hybrid versions of conventional mainstays such as the big 7-Series sedan. A hybrid uses an internal combustion engine to charge the battery and relies on both internal combustion and an electric motor in order to reduce fuel consumption.