BMW Updates 2020 Guidance, Expects Significantly Lower Profit
May 06 2020 - 1:38AM
Dow Jones News
By Jessica Sier
BMW AG updated its 2020 guidance, widening its earnings margin
and predicting profits will be significantly lower than 2019.
The highest negative impact is expected in the second quarter of
2020, and earnings before interest and taxes margin for the
automotive segment will likely be between 0% and 3%, the German car
manufacturer said late Tuesday.
BMW said group profits before tax will be significantly lower in
financial year 2020, and delivery volumes are unlikely to return to
normal within weeks of the coronavirus pandemic ending.
The company said return on equity for its financial services
segment will now likely fall moderately year-over-year.
"The updated guidance does not, in particular, include, a longer
and deeper recession in major markets, a more severe economic
slowdown in China as a result of recession in other parts of the
world, significant market distortions due to an even stronger
competitive environment and possible implications caused by a
second wave of infections and associated containment measures," the
company said.
BMW will report its first quarter earnings on Wednesday.
Write to Jessica Sier at jessica.sier@wsj.com
(END) Dow Jones Newswires
May 06, 2020 01:23 ET (05:23 GMT)
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