Chinese market crucial to BMW forecast - Taipei Times
BMW AG, the world’s biggest maker of luxury cars, said a sharp slowdown in Chinese demand might lead it to revise profitability goals at its automaking division. The unit’s earnings before interest and taxes are still expected at 8 percent to 10 percent of sales, though “if conditions on the Chinese market become more challenging, we cannot rule out a possible effect” on the forecast, BMW said yesterday in... BMW’s second-quarter margin on automaking narrowed to 8. 4 percent, trailing competitors Audi and Mercedes-Benz, from 11. 7 percent a year earlier. The Munich-based manufacturer cut prices and production in China earlier this year while Ford Motor Co said late last month that carmakers’ sales in the country may drop this year for the first time since 1998. “We’re still under pressure in... Mercedes reported a second-quarter margin from carmaking of 10. 5 percent, while Volkswagen AG unit Audi reported 9. 8 percent. Second-quarter group earnings before interest and tax (EBIT) at BMW fell 3 percent from a year earlier to 2. 53 billion euros (US$2. 77 billion). Carmaking earnings declined 3. 4 percent to 3. 61 billion euros. Source: www.taipeitimes.com
