BMW reports nearly 33 percent drop in yearly profits

[Andrew 30]

As we said, even luxury car companies are not immune to the U.S. economic downturn and high gas-prices. Second-quarter profits at BMW were down nearly 33 percent resulting in BMW dropping its year profit forecast for 2008.

BMW said it earned 507 million euros in the April through June period, down 32.7 percent from 753 million euros it earned last year. Sales for BMW were down half a percent to 14.6 billion euros compared to 14.7 billion euros from last year.

“Business conditions for the automobile industry deteriorated sharply again in the second quarter due to further ongoing steep rises in oil and raw material prices, the weakness of the U.S. dollar, the impact of the international financial crisis and a weaker U.S. economy,” BMW said in its press release.