Car company adjusts annual forecast for 2024
BMW AG is now somewhat less optimistic and has lowered its forecast for 2024 accordingly.
This forecast adjustment was triggered by delivery suspensions and recalls relating to the integrated braking system (IBS). In this regard, the Munich-based company is referring to additional burdens in the Automobiles segment. According to BMW's explanations, there will be negative sales effects in the second half of the year due to delivery stops. The car manufacturer also anticipates high additional warranty costs in connection with the IBS in the third quarter.
BMW also mentions the subdued demand in China. This is having an additional impact on sales volumes there. There is a continuing reluctance to buy in China despite government support measures, as the car manufacturer points out.
Significant decline in consolidated earnings before taxes expected
The Group has therefore revised its forecast on the basis of the developments described in the press release.
BMW therefore provides the following outlook for the Automotive segment:
Deliveries to customers are now no longer expected to increase compared to the previous year, but to fall slightly.
With regard to the EBIT margin for 2024, BMW is forecasting a corridor of 6 percent to 7 percent. Previously, a range of 8 percent to 10 percent was assumed.
According to its press release, BMW anticipates a significant decline in Group profit before tax.