German automotive manufacturer BMW has reported its first quarterly loss since 2009.
BMW lost 666 million euros ($787 million U.S.) before interest and taxes between April and June, its first quarterly deficit since the financial crisis in 2009, and down from a 2.2 billion euro profit in the same period of 2019.
The earnings before interest and taxes (EBIT) margin in the company's automotive segment was pushed to a negative 10% in the quarter, slumping from a gain of 6.5% in the second quarter of last year, as BMW ramped up expensive electric car technology investments and deliveries of new cars fell by 25% in the quarter.
BMW is the final German vehicle manufacturer to report quarterly earnings. Volkswagen Group lost 2.4 billion euros and cut its dividend, while Daimler argued that it had weathered the worst but still needs to slash tens of thousands of jobs throughout Europe.
Despite the difficult quarter, BMW said it expected to post an operating profit for the full year. Shares of BMW fell 3% following the results with some analysts saying they had not expected such a big loss in earnings before interest and taxes (EBIT).
