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BMW profit slides 27%
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July 28, 1999: 7:11 a.m. ET
Struggling Rover arm hurts luxury auto maker; forecasts better second half
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LONDON (CNNfn) - BMW Wednesday announced a 27 percent decline in first-half profit as the German luxury auto maker cited heavier losses at its troubled U.K. Rover subsidiary.
BMW said net profit slipped to 191 million euros ($203 million) from 242 million euros during the first six months, but predicted "substantially improved" results in the second half of the year.
The Munich-based firm highlighted the gap between its own performance and that of Rover, which has seen its European market share dwindle in recent years. BMW's own-brand sales climbed 13 percent in the first six months, buoyed by a 29 percent jump for its new 3-series model. Sales of Rover's mid-market cars fell by more than a third.
BMW's group sales climbed 3.3 percent to 16.35 billion euros.
BMW said its second half would be better as it pushes ahead with the restructuring of the Rover unit. The unit was almost closed earlier this year, but was saved when the company secured a 152 million pound ($236 million) package of state aid from the British government.
BMW [FSE: FBMW] shares added 12 euros or 1.75 percent at 697 euros following the results. 
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