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Munich - BMW’s profit gained 7.9% in the second quarter as the luxury car maker boosted sales of its new X1 compact SUV and kept a tight grip on costs.
Earnings before interest and tax rose to €2.73bn from €2.53bn last year. That compares to the €2.67bn average of 10 analyst estimates compiled by Bloomberg. BMW’s result comes after Daimler, maker of Mercedes-Benz cars, and Volkswagen beat expectations with earnings that excluded one-time costs.
BMW lost its leading position in the world’s luxury-car market to Mercedes in the first half after its rival added a range of new models and revamped its business-focused E-Class sedan.
BMW has said it will focus instead on profitability as it invests in technology, such as self-driving features, to compete with new rivals including Uber Technologies and Tesla Motors.
Return on sales from car making was 9.5%, compared with 8.4% in the same quarter last year. That compares with a profit margin of 10% for Mercedes and 7.6% for Audi.
BMW is at a comparatively weaker point of its product cycle. It’s preparing for next year’s remake of the 5-Series sedan, which competes with the Mercedes E-Class that went on sale in March.
Another challenge has been US customers’ shift toward sport utility vehicles, which has led to deeper discounts on the sedans at the core of BMW’s line up.
The car maker altered plans to boost production of models such as the X5 SUV at its factory in Spartanburg, North Carolina, in reaction to the change in demand.
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