BMW: cuts full-year outlook, citing international trade
(CercleFinance.com) - German premium car maker BMW has cut its guidance for the current financial year, in particular citing growing tension over international trade.
In a statement issued at lunchtime, the Munich-based group said it no longer forecasts pre-tax earnings on a par with last year's level.
Group profit before tax is now expected to show a "moderate decrease" from the previous year, the company said.
In the automotive segment, revenues are now forecast to be slightly less than last year, compared to a slight year-on-year increase expected previously.
The automotive segment's EBIT margin is now expected to be at least 7%, down from a previous forecast of 8-to-10%, it added.
To justify the adjustment, BMW cites the implementation of tougher emissions rules, higher goodwill and warranty measures, as well as the ongoing international trade conflicts.
The BMW share was down 3.3% at 80.8 euros in Frankfurt after this warning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In a statement issued at lunchtime, the Munich-based group said it no longer forecasts pre-tax earnings on a par with last year's level.
Group profit before tax is now expected to show a "moderate decrease" from the previous year, the company said.
In the automotive segment, revenues are now forecast to be slightly less than last year, compared to a slight year-on-year increase expected previously.
The automotive segment's EBIT margin is now expected to be at least 7%, down from a previous forecast of 8-to-10%, it added.
To justify the adjustment, BMW cites the implementation of tougher emissions rules, higher goodwill and warranty measures, as well as the ongoing international trade conflicts.
The BMW share was down 3.3% at 80.8 euros in Frankfurt after this warning.
Copyright (c) 2018 CercleFinance.com. All rights reserved.