FRANKFURT: German luxury carmaker BMW posted a forecast-beating 7.5 percent rise in second-quarter profit as sales of motorcycles and demand for its new 5-series helped to offset slowing demand for luxury cars in the US.
Deliveries of BMW Mini and Rolls-Royce vehicles rose 4.6 percent to 633,582 cars in the second quarter.
BMW forecast a “solid” increase in automotive segment revenue for the full year, predicting “additional momentum” in sales in the second half as a new version of its 5 series is launched in markets such as China.
Analysts welcomed BMW’s outlook for car sales, and the fact that the Bavarian automaker remains the only German premium brand that is not being investigated for using illegal software to cheat emissions tests.
“We confirm our positive view on BMW especially as BMW seems to be less involved in the ongoing emission discussions,” DZ Bank analyst Michael Punzet said in a note on Thursday.
German prosecutors are investigating Daimler, Audi, Porsche and VW to see whether they used illegal software designed to cheat emissions tests.
BMW’s group earnings before interest and tax (EBIT) rose to €2.92 billion ($3.46 billion), compared with an average forecast for €2.82 billion in a Reuters poll of banks and brokerages.
BMW affirmed its guidance for a slight increase in full-year group pretax profit and an operating margin of 8 to 10 percent at its automotive business, which posted a second-quarter margin of 9.7 percent, up from 9.5 percent a year earlier.
Germany’s auto industry is still under fire almost two years after Volkswagen admitted to cheating pollution tests.
Politicians and auto executives in Germany on Wednesday agreed to update the engine management software in 5.3 million diesel vehicles in an attempt to cut pollution and avert outright bans of diesel cars from cities such as Stuttgart.
The cost of the software updates, which are designed to improve exhaust gas filtering systems and to retain confidence in diesel as a technology, will cost BMW a low to medium double-digit million euro amount, the company said on Thursday.
The compromise was agreed despite criticism from environmental groups who dismissed the updates as an inadequate solution for improving air quality, and amid demands from some politicians to impose more extensive mechanical modifications to diesel vehicles.
“The probability of hardware updates is very low and technically not feasible,” Chief Executive Harald Krueger told journalists on conference call. Older cars do not have space to fit bulky exhaust gas recirculation systems, BMW said.
The share of diesel engine cars at BMW has fallen to 35.4 percent of new deliveries worldwide, and 61 percent of sales in Germany, from a level of 37 percent and 65 percent in 2016. BMW has made adequate provisions for a possible decline in residual values of diesel cars, the company said, adding that currently BMW is not seeing any residual value declines.
BMW’s 5-series launch helps drive forecast-beating Q2 profit
BMW’s 5-series launch helps drive forecast-beating Q2 profit
Using space science to protect Saudi Arabia’s environment
- Kingdom is harnessing satellite technology to forecast disasters, boost agriculture
RIYADH: Learning space science has delivered significant environmental benefits worldwide, helping many countries better understand and manage climate challenges.
Saudi Arabia is now taking steps not only to explore the galaxy but also to invest in future generations who can apply space science to pressing environmental issues at home.
Last November, the Space Academy, part of the Saudi Space Agency, launched a series of seminars designed to enhance knowledge and develop skills in space science and technology, with a particular focus on Earth observation.
Running for nearly a month, the program formed part of a broader strategy to nurture national talent, raise scientific awareness, and build data capabilities that support innovation and research across the Kingdom.
As efforts to strengthen the sector continue, important questions remain: How can space science translate into tangible environmental benefits? And how large is the global space economy?
In an interview with Arab News, Fahad Alhussain, co-founder of SeedFord, highlighted the scale of the opportunity and its environmental impact.
“To be frank, the slogan that we always use in space is that ‘saving the Earth from the space.’ It is all about this,” Alhusain told Arab News.
“You can recall a lot of related environmental issues like global warming, related to forests, related to the damage that happens to the environment. Without space, it would be almost impossible to see the magnitude of these damages.”
According to Alhussain, satellites have transformed how experts observe environmental changes on Earth, offering a comprehensive view that was previously impossible.
He said that “the transformation of technology allows even the non-optical ways of measuring, assessing, and discovering what is going on in the environment … you can even anticipate fire before it happens in the forest.”
“You can detect the ice-melt down, you can get huge amount of information and can see it through the weather maps…there is a huge section in the economy for the environment,” Alhussain commented.
A 2022 report by Ryan Brukardt, a senior partner at McKinsey & Company, published by McKinsey Quarterly, found that more than 160 satellites currently monitor Earth to assess the impacts of global warming and detect activities such as illegal logging.
Brukardt cited NASA as an example of how advanced satellite tools are used to track environmental changes, including shifts in ocean conditions, cloud cover, and precipitation patterns. He also noted that satellite data can help governments determine when immediate action is needed, particularly in response to wildfires.
FASTFACT
Did You Know?
- Satellites collect massive amounts of data, and AI is used to help interpret this information more efficiently and predict future outcomes.
- The global space economy surpassed $600 billion in 2024 and is projected to exceed $1 trillion by 2030.
- Saudi Arabia has established three key entities: the Supreme Space Council, the Saudi Space Agency, and the Communications, Space, and Technology Commission.
Beyond disaster response, satellites offer vital insights for agriculture. According to Brukardt’s report, scientists can use space-based data to monitor crop development and anticipate threats to harvests, such as drought or insect infestations.
These wide-ranging applications explain the rapid growth of the global space economy.
According to World Economic Forum research, the sector is projected to reach $1.8 trillion by 2035, nearly tripling from $630 billion in 2023.
For Saudi Arabia, expanding space science capabilities could help address the country’s arid conditions by monitoring desertification and identifying sources of air pollution. Early detection of droughts, heatwaves, and crop stress could support more effective environmental planning and response.
Space-based data could also play a critical role in tracking environmental changes in the Red Sea and surrounding coastal ecosystems, strengthening marine conservation efforts and supporting the Sustainable Development Agenda.
As Alhussain emphasized, advancing knowledge in space science and satellite technology enables experts to measure environmental damage accurately and predict disasters before they occur, allowing for more effective responses.
By investing in space science education and research, the Kingdom can build national expertise, strengthen environmental protection policies, enhance food and water security, and contribute to global efforts to combat climate change—while also benefiting from the rapidly expanding space economy.
Ultimately, a deeper understanding of space and its applications offers Saudi Arabia, and the world, better tools to anticipate climate challenges, protect ecosystems, and safeguard biodiversity.
“By collecting data and using satellites, you can better analyze and measure so many things that help the environment,” said Alhussain.
“There will be patterns where you can warn people, scientists and decision makers to do something about it.”
