BERLIN: BMW (BMWG.DE) forecast on Friday profit margins for its automotive business this year below analysts’ expectations, factoring in the impact of US tariffs imposed in recent weeks and anticipating an even more intense trade war.
The premium carmaker expects its earnings margin for cars to be 5-7 per cent in 2025, below an LSEG consensus estimate of 7.3 per cent, dragged down one percentage point by the impact of tariffs already imposed by March 12.
PROFIT SLUMP
BMW’s net profit slumped by over a third in 2024 to 7.68 billion euros ($8.32 billion), in line with market expectations, after weak sales in China and Germany as well as delivery hold-ups, because of problems with a brake, dented performance.
Its shares were down 4 per cent in early trade, the biggest fall on Germany’s DAX index.
The group proposed an increased payout ratio of 36.7 per cent, among the highest in its history, consisting of a dividend of 4.32 euros per preferred share for 2024, still down from 6.02 euros paid out for the previous year.
BMW cut its 2024 margin outlook to 6-7 per cent from 8-10 per cent in September because of slumping China sales and problems with a brake supplied by Continental (CONG.DE), affecting 1.5 million cars.
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