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BMW earns fall 28 percent

Wednesday - 8/1/2012, 2:35am  ET

The Associated Press

FRANKFURT, Germany (AP) - German luxury automaker BMW AG says earnings fell 28 percent in the second quarter due to higher costs for investments in new technology, and after a large one-time plus from the year-ago quarter affected the comparison.

Net profit fell to (EURO)1.28 billion ($1.57 billion) from (EURO)1.77 billion a year ago. Sales rose 7 percent to (EURO)19.2 billion.

The company said Wednesday that higher costs for new technologies, vehicle development and personnel played a role in the earnings decrease. It also said that the previous year's quarter had seen record earnings boosted by (EURO)464 million in one-time additions to earnings.

The company reported record sales of 475,000 vehicles and said its profit margins remained at a strong 11.6 percent.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)