Luxury automaker BMW saw profits jump by 11% in the second quarter year on year on the strength of robust sales of its three product lines.
A Tuesday announcement from the German firm said net profit rose to nearly 1.94 billion euros in the quarter ending in June compared to 1.74 billion euros in the same period last year. The results beat the 1.8 billion euros profit analysts forecast.
Sales grew 5.4% for the BMW line, 5.4% for the Mini Cooper brand, and 15% for Rolls Royce limousines. Operating profit margin increased to 9.5% from 8.4% as the company cut back on research and development spending as a proportion to revenue in the second quarter, BMW reported.
While it has yet to feel the aftereffects of Brexit on its overall operations, chief financial officer Friedrich Eichiner said the company expects “the market environment will likely be more muted” in the following six months of the year.
Eichiner explained that upfront expenditure and wage increases in Germany as a result of the impact of Britain’s renegotiations with the European Union would cause a drag on earnings.
BMW maintains operations in Britain, where the Mini and Rolls Royce units are based.
