Automaker Adjusts 2024 Annual Forecast
BMW AG has become somewhat less optimistic and has accordingly lowered its forecast for 2024.
The trigger for this adjustment in the forecast is delivery suspensions and recalls related to the integrated braking system (IBS). The Munich-based company mentions additional burdens in the automobile segment in this context. According to BMW’s explanation, delivery suspensions are leading to negative sales effects in the second half of the year. The automaker also expects high additional warranty costs related to the IBS in the third quarter.
Additionally, BMW highlights the subdued demand in China, which is further impacting sales volume in that market. There is a continued reluctance to purchase in China, despite government support measures, as the automaker notes.
Significant Decline in Pre-tax Group Earnings Expected
Based on the developments described in the press release, the company has revised its forecast.
For the automobile segment, BMW now provides the following outlook:
Deliveries to customers are no longer expected to increase compared to the previous year but are projected to slightly decline.
Regarding the EBIT margin for 2024, BMW now expects a range of 6 percent to 7 percent, down from the previous forecast of 8 percent to 10 percent.
As for the group’s pre-tax earnings, BMW anticipates a significant decline, according to its press release.
Source: www.kloepfel-consulting.com