BMW posted a 7% drop in second-quarter pre-tax profit on Thursday, a narrower drop than feared as currency and interest rate hedging cushioned the fall, but sales skidded lower, Reuters reported. The report said BMW pre-tax profits dropped to 947 million euros ($US1.08 billion), while net income fell 9.7% to 568 million euros, both well above analysts' expectations and the company's most recent guidance.