Because of the pandemic, the carmaker BMW is continuing to dampen its forecast for the current year.
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The measures to contain the corona pandemic in numerous markets would last longer than previously expected, the DAX group said. The sales situation in these markets will not normalize after a few weeks as previously assumed. This will be particularly evident in the second quarter of 2020.
BMW therefore now only sees the EBIT margin in the automotive segment at 0 and 3 percent in 2020. The company had announced 2 to 4 percent in March. BMW had an operating return of 4.9 percent last year.
In the financial services segment, the forecast of return on equity is now assuming a moderate decline compared to the previous year. BMW now sees deliveries in the motorcycle segment in the forecast period significantly below the level of the previous year. The EBIT margin is therefore forecast in the corridor of 3 to 5 percent.
The Group continues to see consolidated earnings before taxes significantly below the previous year’s level.
BMW is now counting on slightly lowering the number of employees than in the previous year. As already communicated, the company will use vacancies through fluctuation to drive personnel restructuring.
An impending danger would be if the recession in key sales markets became longer and deeper or if the Chinese economy continued to deteriorate as a result of recessions in other economic regions. These developments are not taken into account in the new forecast for 2020, nor are the possible effects of a second wave of infection and the associated containment measures.
BMW will publish further details on this outlook and the conclusion of the first quarter of 2020 on Wednesday from 7.30 a.m.
FRANKFURT (Dow Jones)
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