MUNICH (dpa-AFX) - BMW AG Tuesday update its guidance for the financial year 2020. The company now expects group profit before tax to be significantly lower than in 2019.
The auto giant said the decisive factor behind the adjustment is that the measures to contain the corona virus pandemic are lasting longer in several markets and are thus leading to a broader negative impact than was foreseeable in mid-March.
Delivery volumes in these markets are expected not to return to normal within a few weeks, as previously expected. The highest negative impact is expected in the second quarter.
The company has widened the range for the EBIT margin for the Automotive segment and now expects a range between 0% and 3%.
Return on equity in the Financial Services segment is now forecast to fall moderately year-on-year.
Motorcycles deliveries over the twelve-month period are now expected to be significantly below the previous year's level. The EBIT margin for the segment is forecasted to be within a range of between 3% and 5%.
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