Munich. The Board of Management of BMW AG has decided
today to update its guidance for the financial year 2020. The decisive
factor for 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. It is therefore apparent that delivery volumes in these
markets will not – as was previously assumed - return to normal within
a few weeks. The highest negative impact is expected in the second
quarter of 2020.
The economic shifts caused by the pandemic make it difficult to
provide a reliable forecast. The outlook is therefore subject to a
high degree of uncertainty. To reflect this uncertainty, the company
has widened the range for the EBIT margin for the
Automotive segment and now expects a range between
0% and 3%.
In the Financial Services segment, the
return on equity is now forecasted 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%.
Group profit before tax is still predicted to be
significantly lower than in 2019.
These targets are to be achieved with a workforce
slightly below the level of the previous year. As already
communicated, reductions in staff numbers due to fluctuation will be
used to manage the workforce size.
The updated guidance does not, in particular, include, a longer and
deeper recession in major markets, a more severe economic slow-down in
China as a result of recessions 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 BMW AG will publish further details on the outlook and the
earnings figures for the first quarter of 2020 on 6 May 2020 at
approximately 07:30 a.m.
