BMW: 2020 profit to be 'significantly lower' than in 2019
(CercleFinance.com) - BMW said that it expects the spread of coronavirus to have a negative impact on its volumes this year, meaning that its profit should be significantly below the previous year's level.
The negative effect on the operating margin of its automotive segment for the full twelve-month period is expected to be around 4 percentage points, it said.
This means that the division's EBIT margin is expected to be between 2% and 4%, BMW added.
Its group profit before tax is therefore expected to be "significantly lower than in 2019," the German carmaker added.
Due to a legal provision of 1.4 billion euros relating to a fine by the European Commission, its net profit already fell in 2019, to 5 billion euros, from 7 billion euros in 2018.
However, the current situation does not offset the group's long-term optimism. Up until 2025, BMW intends to invest over 30 billion euros in research and development to develop future technologies.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The negative effect on the operating margin of its automotive segment for the full twelve-month period is expected to be around 4 percentage points, it said.
This means that the division's EBIT margin is expected to be between 2% and 4%, BMW added.
Its group profit before tax is therefore expected to be "significantly lower than in 2019," the German carmaker added.
Due to a legal provision of 1.4 billion euros relating to a fine by the European Commission, its net profit already fell in 2019, to 5 billion euros, from 7 billion euros in 2018.
However, the current situation does not offset the group's long-term optimism. Up until 2025, BMW intends to invest over 30 billion euros in research and development to develop future technologies.
Copyright (c) 2020 CercleFinance.com. All rights reserved.