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BMW second-quarter hit by rising costs of manufacturing, emissions

BMW second-quarter hit by rising costs of manufacturing, emissions
FILE PHOTO: The logo of BMW is seen during the 87th International Motor Show at Palexpo in Geneva, Switzerland March 8, 2017. REUTERS/Arnd Wiegmann/File Photo -
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Arnd Wiegmann(Reuters)
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FRANKFURT, August (Reuters) – BMW <BMWG.DE> stuck to its outlook even as second quarter earnings fell 48%, hit by the rising cost of manufacturing, currency headwinds and emissions limits.

BMW said its earnings before interest and taxes (EBIT) fell to 2.79 billion euros (£2.54 billion) in the second quarter.

The Munich-based company said the operating margin at its automotive division fell to 6.5%, down from 8.6% a year earlier, despite a 1.5% rise in vehicle sales during the same period.

BMW reiterated that it expects a significant decrease in group profit before tax in 2019 as well as a slight increase in vehicle deliveries, and an EBIT margin of between 4.5% to 6.5% in the automotive division.

(Reporting by Edward Taylor; Editing by Thomas Seythal)

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