 BMW insists it is still on target to beat last year's record annual profit |
BMW has blamed a 14% fall in quarterly profits on the high value of the euro and the cost of developing new models. Reporting its results for the April to June period, the German carmaker made a pre-tax profit of 1.065bn euros ($1.45bn; �718m).
This compares with a profit of 1.23bn euros for the same time last year.
Despite the fall, BMW, whose other brands are Mini and Rolls-Royce, said its profits for 2007 remained on target to beat last year's record 4bn euros.
Rising car sales
Although BMW's group-wide profits fell during the second quarter, its revenues continued to rise, added 11% from a year earlier to 14.68bn euros.
Quarterly sales across its three car brands were up 8.6% to 397,009, again compared with the same period last year.
The continuing high value of the euro against the dollar and yen means that BMW is not able to make as much money from its sales in the US and Japan.
"Adverse currency effects are having a greater impact on earnings than previously forecast," the firm said in a statement.
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