BMW said second-quarter pre-tax profit fell more than one-third YoY to €1.7bn,
slightly above market consensus of €1.6bn. Core automotive operating margin
dropped to 2.3% from 5.4% a year earlier, marginally ahead of analysts' 2.2%
forecast. The company cited headwinds from Middle East tensions and weak demand
and is cutting staff to prepare for tougher competition. CEO Milan Nedelkovic
said the industry faces rapidly intensifying challenges — stronger global
competition, rising regional regulatory demands and the effects of geopolitical
conflict. BMW reiterated full-year guidance, forecasting automotive operating
margin of 1-3%.
