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Demand for offroaders drives up BMW operating profit

Record sales of X1 and new 7 series helped earnings increase by 7.9% in second quarter

The return on sales at BMW’s automotive division rose to 9.5 per cent from 8.4 per cent a year earlier, the company said on Tuesday. Photograph: Maxim Zmeyev/Reuters
The return on sales at BMW’s automotive division rose to 9.5 per cent from 8.4 per cent a year earlier, the company said on Tuesday. Photograph: Maxim Zmeyev/Reuters
Tue Aug 02 2016 - 08:01

BMW’s second-quarter operating profit beat expectations thanks to record sales of luxury cars including the X1 offroader and the new 7 series.

Earnings before interest and taxes (EBIT) rose 7.9 per cent to €2.73 billion, above consensus for €2.65 billion in a Reuters poll.

The return on sales at BMW’s automotive division rose to 9.5 per cent from 8.4 per cent a year earlier, the company said on Tuesday, the 25th consecutive quarter in which automotive profits have been within its target range of between 8 per cent and 10 per cent.

–(Reuters)