DGAP-Adhoc: BMW Group adjusts guidance for current financial year

2018. szeptember 25., kedd, 13:13





DGAP-Ad-hoc: Bayerische Motoren Werke Aktiengesellschaft / Key word(s): Change in Forecast


BMW Group adjusts guidance for current financial year


25-Sep-2018 / 13:13 CET/CEST


Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.


The issuer is solely responsible for the content of this announcement.




The Bayerische Motoren Werke Aktiengesellschaft today decided to adjust its guidance for the financial year 2018. This revision is mainly due to the following factors:



- The BMW Group implemented the requirements of the WLTP regulations early. The industry-wide shift to the new WLTP test cycle has, however, led to significant supply distortions in several European markets and an unexpected intense competition. Thanks to its flexible production and sales strategy, the BMW Group is responding to this increased competition and is reducing its volume planning to focus on earnings quality.



- Increased goodwill and warranty measures are leading to significantly higher additions to the respective provisions in the Automotive Segment.



- The continuing international trade conflicts are aggravating the market situation and feeding uncertainty. These circumstances are distorting demand more than anticipated and leading to pricing pressure in several automotive markets.



Based on the above, the BMW Group is adjusting its guidance for the 2018 financial year as follows:



- In the Automotive Segment, revenues are now forecast to be slightly lower than the previous year (previously: slight year-on-year increase).



- The EBIT margin in the Automotive Segment is now expected to be at least 7 percent (previously: 8 to 10 percent).



- Group profit before tax is expected to show a moderate decrease from the previous year (previously: on a par with previous year). Possible positive earnings effects from a regulatory approval and closing of the planned mobility services joint venture in 2018 are still not reflected in the adjusted outlook.



These circumstances will have a significant effect on group profit before tax and the EBIT margin in the Automotive Segment in both the third and fourth quarters.



The BMW Group remains fully committed to its goal of leading the transformation of the industry. The company continues to strive for sustained high profitability as the foundation of its Strategy NUMBER ONE > NEXT. In addition to the continuation of the current product roll-out, ongoing cost and efficiency measures will also be intensified.



The EBIT margin in the Automotive Segment corresponds to the profit before financial result of the Automotive Segment divided by revenues of the Automotive Segment.






Contact:

Torsten Schüssler

Head of Investor Relations

Tel.: +49-89-382-25387








25-Sep-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: Bayerische Motoren Werke Aktiengesellschaft

Petuelring 130

80788 Munich

Germany
Phone: +49 (0)89 382 0
Internet: www.bmwgroup.com
ISIN: DE0005190003, DE0005190037
WKN: 519000 , 519003
Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange





 
End of Announcement DGAP News Service




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