BMW Posts 2Q Loss; Backs 2020 View

By Kim Richters

BMW AG on Wednesday said it swung to a loss in the second quarter during the coronavirus pandemic, and it confirmed its guidance for the year.

The German luxury car maker posted a quarterly net loss of 230 million euros ($271.5 million) compared with a profit of EUR1.45 billion the same period a year earlier.

It swung to a loss before interest and taxes of EUR666 million compared with an earnings before interest and taxes of EUR2.20 billion the year prior.

In the automotive segment, BMW's EBIT margin fell to negative 10.4% in the quarter from positive 6.5% a year ago.

Revenue for the quarter dropped to EUR19.97 billion from EUR25.72 billion, BMW said.

The company backed its guidance for 2020, which includes an auto segment EBIT margin of between 0% and 3%. Group profit before tax is expected to be "significantly lower than in 2019."

BMW Chief Executive Oliver Zipse said the company was "cautiously optimistic for the second half of the year."

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

August 05, 2020 02:24 ET (06:24 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.