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Munich (dpa -AfX) – The car manufacturer BMW goes with caution in the current year in the face of customs duties and the poor location in China. Already now there are billions of billions for the higher US tariffs that have already come into force. In the case of possible import duties against the EU, the environment could be a little more difficult, as management admitted on Friday. After all, BMW boss Oliver Zipse expects an overall increasing demand for the new year. However, the stock gave in the morning.
The paper at times lost more than four percent in the morning, but recovered something again. In the late morning it was just under one percent in a reduced one at 81.60 euros, but was still one of the biggest losers in the DAX. A small plus has been available since the beginning of the year. In the view of the past twelve months, however, the share has lost more than a fifth.
The fourth quarter and the prospects are cloudy, wrote UBS analyst Patrick Hummel. The cash inflow alone was convincing. Bernstein analyst Stephen Reitman was somewhat more confident: the current customs loads are calculated, the forecast for the operational margin in the auto business is, according to his assessment, something about the expectations of investors. BMW is also the first manufacturer to include the effects of tariffs.
The profit before interest and taxes fell unexpectedly by almost 38 percent to 11.5 billion euros last year. In the car division, the operating profit margin slipped by 3.5 percentage points to 6.3 percent. In the new year, management is from 5.0 to 7.0 percent and thus does not rule out further deterioration despite falling investments and an expected slight sales plus. With their estimates, analysts have so far been more at the top of the range.
Bayern are painfully felt to feel the latest customs increases in the USA. The customs increases that came into force until March 12 reduced the operational profit margin against interest and taxes in the car division by about one percentage point, said CFO Walter Mertl. CEO Oliver Zipse spoke of a “conservative” assessment of the effects that BMW had formed a provision of around one billion euros in this context. Despite the “challenging” situation, the input tax result should land roughly at the level of 2024. BMW means a range of 5 percent around the previous year’s value of 11 billion euros.
US President Donald Trump recently postponed increased tariffs against Mexico until early April. However, the deletion only applies to products that correspond to the rules of the North American free trade agreement USMCA and at least 75 percent in North America must be added. The cars built by BMW in Mexico in Mexico in Mexico in Mexico do not meet this condition according to group information.
Before that, only one import customs of 2.5 percent was applied – 25 percent are now due. According to information, other US tariffs also meet the company from the annual report. This includes the taxes on imports of steel and aluminum as well as against imports from China and the subsequent countermeasures.
Possible new tariffs do not yet include BMW in its expectations. But at the beginning of April it could come even thicker. At the moment, the import duties for cars from the EU are still 2.5 percent. If these rise to 10 percent, BMWS Marge would once again reduce half a percentage point, said Mertl. However, Trump threatens tariffs of 25 percent for imports from the EU.
In the past financial year 2024, the manufacturer had to accept a drop in profits. After taxes, the group earned 7.7 billion euros. That is 37 percent less than in the previous year and the second severe decline. In addition to weakening sales in China, the Munichers also suffered from problems with brakes related to the supplier Continental. The dividend is said to shrink from 6 euros to 4.30 euros. Sales also had to accept a clear damper. 142 billion euros are a minus of 8.4 percent.
BMW is not alone with its slump in profits. The other two large German car companies, Volkswagen (Volswagen (VW) VZ) and Mercedes (Mercedes-Benz Group (ex Daimler))-Benz (Mercedes-Benz Group (EX Daimler)) have reported similar crashes. At VW (Volkswagen (VW) VZ) it had gone to EUR 12.4 billion by 31 percent, and 28 percent of Mercedes to 10.4 billion euros. The two manufacturers also complain about the difficult environment in China./Men/ruc/stw/stk
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