Add BMW to the growing list of European automakers slashing forecasts due to softening demand, especially in China.
BMW's ADRs fell 5% late in the US cash session after news that the struggling automaker slashed its full-year automotive profit outlook to around breakeven and warned of delivery declines.
The European automaker said it would accelerate restructuring and phase out older models. It now expects automotive operating margin to range from -.5% to to .5% for the year, down from its previous forecast of 1% to 3%.
BMW attributed the profit downgrade to fourth-quarter charges from expanded restructuring and a "decision to expand and intensify portfolio and structural measures."
"The portfolio measures stem from the sustained high demand for Neue Klasse models, to which the BMW Group has responded by introducing additional production shifts at an early stage. The resulting acceleration of the production ramp-up creates an opportunity to begin phasing out previous vehicle and technology generations earlier, including selected models based on Gen5 battery technology," the automaker wrote in a statement.
BMW also expects a moderate decline in annual vehicle deliveries, compared with a previously forecast slight decline.
More details here:
- Deliveries in Segment Automotive: moderate decrease versus previous year (before: slight decrease).
- Share of all-electric cars in deliveries in Segment Automobile: slight increase versus previous year (before: at previous year's level).
- CO2e emissions scope 3 supply chain and use phase i
