--BMW's full-year earnings and revenue took a hit from the pandemic

--The car maker had a rebound in the second half of the year

--BMW sees itself in a "favorable starting position" for 2021

By Kim Richters

BMW AG on Thursday reported lower earnings and revenue in 2020 amid the coronavirus pandemic, but was optimistic about 2021 after a recovery in the second half.

The German luxury car maker's full-year aftertax profit fell to 3.86 billion euros ($4.60 billion) from EUR5.02 billion a year earlier.

Earnings before interest and taxes declined to EUR4.83 billion from EUR7.41 billion, and revenue for the year dropped 5% to EUR98.99 billion from EUR104.21 billion.

The company proposed dividends of EUR1.90 a common share and EUR1.92 a preferred share, lower than the 2019 dividends of EUR2.50 a share of common stock and EUR2.52 a share of preferred stock.

BMW said it had a strong second half in 2020, as it saw business recovering and high demand in its automotive segment.

For the last quarter of the year, BMW's automotive revenue was EUR26.02 billion and 3% lower on year. However, automotive EBIT came in 10% higher on year and stood at EUR2.01 billion. Earnings benefited from a higher share of vehicles sold in high-margin market segments, the company said.

"We have improved the situation on the cost side by cutting fixed costs and lowering capital expenditure, putting us in a favorable starting position to make 2021 a more profitable year," Chief Financial Officer Nicolas Peter said in a statement.

At 1153 GMT, shares in BMW traded 2.2% lower at EUR79.59.

Nord/LB analyst Frank Schwope said BMW presented quite strong figures for the year considering the pandemic, even though they were slightly below market expectations.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

03-11-21 0717ET