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Higher costs for new technology, high year-earlier result lead to earnings decline
FRANKFURT, Germany (AP) German luxury automaker BMW AG says earnings fell 28 percent in the second quarter due to higher costs for investments in new technology, and after a large one-time plus from the year-ago quarter affected the comparison.
Net profit fell to 1.28 billion from 1.77 billion a year ago. Sales rose 7 percent to 19.2 billion.
The company said higher costs for new technologies, vehicle development and personnel played a role in the earnings decrease. It also said that the previous year's quarter had seen record earnings boosted by 464 million in one-time additions to earnings.
The company reported record sales of 475,000 vehicles and said its profit margins remained at a strong 11.6 percent.