German automaker BMW sees net profit slip as it incurs costs to launch new models

German luxury automaker BMW AG says net profit slipped 1 percent in the second quarter as the company incurred higher launch costs for new models.

The Munich-based company also said it sold a less profitable mix of vehicles, containing more compact cars that typically have lower profit margins.

Net profit fell to 1.749 billion euros ($1.9239 billion) from 1.767 billion euros in the April-June quarter of last year.

Sales boomed 20.2 percent to 23.935 billion euros, thanks to record numbers of vehicles sold but also boosted by currency exchange rate shifts.

Key BMW models such as the 5 Series and 7 Series sedans are nearing the end of their life cycle, which can hurt sales as customers see newer products from competitors. The company has already unveiled a new 7-series.