BMW Net Profits Down 76% This Year; Ford, Subaru Increase Sales

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BMW today reported that its net profits are down 76% from a year ago. The BBC has more:

Carmaker BMW has said it sees few signs of a lasting economic recovery after it reported profits down by three-quarters for the April to June period. Net profit was 121m euros ($174m; £103m), down 76% from a year ago, with car sales down by nearly a fifth.

Despite “some tentative positive signs, a lasting and wide ranging recovery is not yet in sight”, BMW said. BMW has been cutting costs as sales fall. Last week, it announced it would quit racing in Formula 1 from the end of this season.

Earlier on Tuesday, the world’s biggest carmaker, Toyota, reported a big quarterly loss after sales slumped.

Last week, VW reported an 81% net profit loss from a year ago. Renault, Peugeot Citroen, Daimler and Nissan also reported losses.

Yet some carmakers are suffering more than others. In the US, Subaru’s sales have jumped 34%, Hyundai’s are up 12%, and Ford sales have increased 2.3% from last year. Cash for Clunkers is largely responsible: Up to 50% of Subaru’s July sales were part of Cash for Clunkers, reports Edmunds. Most people bought Subaru Foresters in exchange for their clunkers.

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  • Wilson Carey

    Maybe their sales are down because they are trying to SUE the internets. That’s right BMW is suing itself accross the internets. Use a BMW on your website? Sued! Use a BMW Number like m3 on your website? Sued!

  • The Munich-based company earned euro121 million ($173 million) in the April-June period, compared with euro507 million a year earlier.
    Sales fell 11 percent, dropping to euro12.9 billion from euro14.5 billion.
    The company opted not to provide a forecast for the rest of the year, citing “the highly volatile state of the markets and uncertainty with regard to future developments.” BMW said it does not expect sales to reach 2009’s total of euro53 billion.
    That helped push BMW shares down 1.7 percent to euro32.36 in Frankfurt.

    Thanks
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  • The most important for BMW is that they expected greater decrease and these financial results were quite positive for them.