The automobile giant BMW has said, after a decline in profits for the April to June period, that there are few signs of economy recovery. The profit for the concerned period this year was 174 million dollars which is 76% less than what it was a year ago in the same period. Also, car sales have gone down by a fifth.

Even though there are certain positive signs but it seems that long range recovery is still a far fetched goal. Apparently one of the biggest positive was the 30% rise in new car sales in Germany. Moreover, Toyota also reported a major loss once sales slumped. BMW started feeling the affect when in the second quarter the sales decreased for cars and motorcycles.

According to the firm, it is unable to forecast for rest of year looking at the current economic uncertainty. The firm believes that time will remain bad till the end of the year 2009. BMW has cut its costs significantly to battle the decrease in sales. One of its cost cutting methods is to stop racing in Formula 1, announcement of which was made last week.