MUNICH: Bayerische Motoren Werke, the planet's largest manufacturer of luxury automobiles – among them the eponymous BMW marque and Rolls Royce – is not immune from the world's economic malaise, it emerged Friday.
Second-quarter earnings lagged well behind analysts' estimates, prompting the automaker to abandon its €3.78 billion ($5.89bn; £2.97bn) profit forecast for this year.
It cited falling US sales, the southbound trajectory of the dollar, and rising oil and raw materials costs.
Net income for the quarter fell to €507 million, down year-on-year from €753m. The result undershoots a median forecast of €703m by five analysts surveyed by Bloomberg. Sales fell to €14.6bn from €14.7bn.
With Teutonic precision BMW spokesman Marc Hassinger commented: "Business conditions for the automobile industry have deteriorated sharply over the past weeks."
Data sourced from Bloomberg.com (Germany); additional content by WARC staff