BMW started with a drop in profits into the year. The bottom line is that the group made 2.2 billion euros in the first quarter. That was 26.4 percent less than in the same period last year.
Especially a weak one China-S business spoiled the balance sheet, and the US tariffs are also likely to cost even more over the course of the year, which had hardly yet affected the current figures. Nevertheless, BMW adheres to its forecast.
The more demanding the environment, the more decisive products, strategy and flexibility, said CEO Oliver Zipse (61). You serve “the different customer requests worldwide” and can achieve “robust results” and keep the course on the annual goals.
Already the sales figures published in April for the first quarter did not allow anything to be expected: The significant crash in China had dragged the global sales of the BMW Group, which also include Mini and Rolls-Royce. Specifically by 1.4 percent on 586,000 cars. This resulted in sales of 33.8 billion euros – 7.8 percent less than a year ago.
Numbers better than expected
With the figures from day -to -day business, however, BMW does better than feared by experts. The result from interest and taxes slipped by 22.5 percent to 3.1 billion euros. In automotive construction, the operational margin (EBIT), which was much noted on the capital market, fell by 1.9 percentage points to 6.9 percent. That was more than an average of analysts.
BMW is not alone with its slump in profits – and has not even beaten so badly compared to the German competition: Rival Mercedes has reported a minus of 43 percent to 1.73 billion euros for the first quarter.
At the other big premium competitor Audi If the bottom line was 630 million euros – that it was only a minus of 14.4 percent was due to the very weak comparison quarter from the previous year. At German number one and Audi mother Volkswagen it was 2.2 billion euros and a minus of 41 percent.
The mood in the industry is bad
The mood in the German auto industry – including suppliers – is bad. The business climate index for the industry, which is raised by the IFO Institute, is deep in the negative area with minus 30.7 points. Especially in the export expectations, it recently went down, and companies also estimate their competitive position less outside of the EU, according to the economic researchers.
They are the two major problems for Germany Important industry: In China, the carmakers are exposed to an increasingly increasing domestic competition and a sharp price competition. And in the USA mainly presses the fear of how the tariffs of President Donald Trump (78) will continue. Even the US company ford Most recently spoke of billions of places for Trump’s trade policy.
BMW produces about as many cars in the United States with just less than 400,000 vehicles per year as it sells there. However, more than half of them are also exported from there. This regularly brings the surprising title of the largest US car exporter according to the value of the vehicles, but makes it necessary to import other cars and parts to the USA. Higher tariffs BMW significantly. The loads from tariffs and possible counter -tariffs could be in the billion dollar area.
Nevertheless, BMW has now confirmed its forecast from March. Also because the group assumes that the current increases will “be temporary in some cases” and trust the demand for its cars. The forecast provides for an input tax result at the previous year’s level – that would be roughly 11 billion euros. The operational margin in the car division is said to be between 5 and 7 percent.
However, BMW also warns: “The actual business course may differ from these expectations” – among other things due to new tariffs or if applicable tariffs apply longer than expected. CFO Walter Mertl (51) had spoken of further noticeable loads, especially in the event of permanently increased US tariffs on EU imports. The now increased tariffs against the EU have not yet been included in the corporate outlook.