BMW expects to make a profit this year if demand continues to recover, despite posting a record loss for its car division in the second quarter after sales slumped 25% because of coronavirus lockdowns, it said on Wednesday.
The German manufacturer of BMWs, Minis and Rolls-Royces said sales had started to recover during the latest three-month period, including a 17% jump in deliveries in China, but the rebound would not fully make up for sales lost to Covid-19.
As a result of the sales slide, and higher costs for developing low-emission cars, BMW posted a pre-tax loss of €498 million, its first in over 11 years, and an operating loss of €666 million ($790 million) for the quarter.
Shares in BMW fell 3% following the results, with some analysts saying they had not expected such a big loss in earnings before interest and taxes (EBIT).
Published in The Express Tribune, August 6th, 2020.
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