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BMW after reporting a profit for 44 consecutive quarters posted a loss €666 million ($786M) in Q2 of 2020 largely because of Covid-19.
In total, 485,464 vehicles were delivered to customers during the second quarter (-25.3%). Second-quarter revenues dropped to €14.878 billion or $17.6 billion (2019: €22.624 billion; -34.2%). Segment EBIT for the quarter deteriorated to a loss of €1,554 million (2019: profit of €1.469B), with the EBIT margin falling to negative 10.4% (2019: positive 6.5%).
In Europe and the Americas, BMW second-quarter deliveries were significantly lower. A good performance by the BMW Brilliance Automotive Ltd. joint venture in China contributed to an improved financial result. In China, BMW delivered more vehicles to customers in the second quarter than in the same period last year – with growth of almost 17%.
The loss before tax for the second quarter amounted to -€300 million (2019: profit before tax of €2,053 million). As a result, the Group’s EBT margin for the three-month period fell to -1.5% (2019: +8.0%). The loss after tax amounted to €212 million (2019: profit after tax € 1,480 million).
“At this point, we are cautiously optimistic about the second half of the year. The new BMW 2 Series Gran Coupé, 4 Series Coupé, the 5 Series, the 6 Series Gran Turismo and the iX3, along with plug-in hybrids like the X2, 3 Series Touring, and 5 Series will all create fresh momentum,” claimed Oliver Zipse, Chairman of the Board of Management of BMW AG.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
BMW Posts $786 Million Loss in Q2. Sales Off -25%
Click to Enlarge.
BMW after reporting a profit for 44 consecutive quarters posted a loss €666 million ($786M) in Q2 of 2020 largely because of Covid-19.
In total, 485,464 vehicles were delivered to customers during the second quarter (-25.3%). Second-quarter revenues dropped to €14.878 billion or $17.6 billion (2019: €22.624 billion; -34.2%). Segment EBIT for the quarter deteriorated to a loss of €1,554 million (2019: profit of €1.469B), with the EBIT margin falling to negative 10.4% (2019: positive 6.5%).
In Europe and the Americas, BMW second-quarter deliveries were significantly lower. A good performance by the BMW Brilliance Automotive Ltd. joint venture in China contributed to an improved financial result. In China, BMW delivered more vehicles to customers in the second quarter than in the same period last year – with growth of almost 17%.
The loss before tax for the second quarter amounted to -€300 million (2019: profit before tax of €2,053 million). As a result, the Group’s EBT margin for the three-month period fell to -1.5% (2019: +8.0%). The loss after tax amounted to €212 million (2019: profit after tax € 1,480 million).
“At this point, we are cautiously optimistic about the second half of the year. The new BMW 2 Series Gran Coupé, 4 Series Coupé, the 5 Series, the 6 Series Gran Turismo and the iX3, along with plug-in hybrids like the X2, 3 Series Touring, and 5 Series will all create fresh momentum,” claimed Oliver Zipse, Chairman of the Board of Management of BMW AG.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.