FRANKFURT – BMW on Tuesday lowered the outlook for the profitability of its automotive and motorcycles division, citing worse-than-expected demand which has been hit by measures to contain the coronavirus.
MBW said it expects the earnings before interest and taxes margin for the automotive segment to fall within a range between 0% and 3% this year, adjusting its outlook from a previously expected margin range of between 2% and 4%.
‘The decisive factor for the adjustment is that the measures to contain the coronavirus pandemic are lasting longer in several markets and are thus leading to a broader negative impact than was foreseeable in mid-March’, BMW said.
Delivery volumes in these markets will not rebound within a few weeks as BMW had assumed, with the highest negative impact now expected in the second quarter of 2020, the carmakers said, cautioning that matters could still get worse.
‘The updated guidance does not, in particular, include, a longer and deeper recession in major markets, a more severe economic slow – down in China as a result of recessions in other parts of the world’, BMW added.
Further margin pressure could come from market distortion caused by an even stronger competitive environment or from a second wave of infections and associated containment measures.
The Munich-based group further said it now expects deliveries of motorcycles to be down significantly from 2019 levels.
The EBIT margin in the motorcycles segment will now be within a range of between 3% and 5%, rather than 6% and 8%, BMW said.
Last month BMW warned it was expecting a further decline in global demand even after a 20.6% drop in first-quarter sales to 477.111 vehicles.
BMW said in March that its pre-tax profit and vehicle deliveries would drop significantly this year as the coronavirus spreads, and that this – combined with higher research and development spending – would lower the profit margin in its automotive segment.
BMW is due to publish first-quarter earnings on May 6.
This fall and coming winter, protecting yourself against novel coronavirus in addition to the flue are imperative as the pandemic rages on. Deaths from the virus in the world surpassed 980,000 earlier this week, and dozens of states across the world are seeing a rise in COVID-19 cases. While the world’s top infectious disease expert, … Continue reading HEALTH | Strength Your Immune System Amid Coronavirus: Experts Offer Simple Tips
President Trump has offered up his opinion of Meghan Markle During a recent press conference, a reporter asked Trump, what he makes of Markle and her husband, Prince Harry encouraging Americans to vote in the upcoming election. While asking her question, the reporter said that the royal pair ‘essentially encouraged people to vote for (Democratic … Continue reading WORLD NEWS | Trump Says He’s ‘Not A Fan’ Of Meghan Markle, Wishes Prince Harry ‘A Lot Of Luck’
NEW YORK – Saudi Arabia’s King Salman bin Abudlaziz on Wednesday called for a comprehensive solution on Iran and disarming its affiliate Hezbollah in Lebanon, and expressed support for U.S. efforts to start talks between Israel and the Palestinians during his first address to the United Nations General Assembly. He said Iran has exploited a … Continue reading NEWS ALERT | In U.N. Debut, Saudi King Calls For Comprehensive Solution On Iran
The Saudi Ministry of Culture announced the establishment of the Red Sea Museum, which will open its doors in 2020, in Bab Al Banat in the Historic Jeddah. The ministry says the museum will include manuscripts, photos, and books, which tell the story of the Bab al-Bunt’s heritage and demonstrate its role as a historical … Continue reading ARTS & CULTURE & ENTERTAINMENT | Jeddah Host The Red Sea Museum
RIYADH | SAUDI ARABIA – Saudi Deputy Defense Minister Prince Khalid bin Salman said Tuesday that the Kingdom is looking forward to the establishment of ‘comprehensive and lasting peace in Yemen through the implementation of the Riyadh Agreement’. On the occasion of the International Day of Peace, he said: ‘We look forward to the day … Continue reading NEWS | Saudi Deputy Defense Minister Hopes Peace Is Restored In Yemen Based On Riyadh Agreement
Saudi Arabia’s Ministry of Culture has announced a collaboration with international art collective teamLab to create a digital-art museum as part of the Kingdom’s Vision 2030. The museum will be located in Jeddah, and is set to be called TeamLab Borderless Jeddah and will open in 2023. The 10 – year collaboration agreement between Saudi … Continue reading ARTS & CULTURE & ENTERTAINMENT | The New Digital – Art Museum Is Coming To Saudi Arabia
Billy Porter is known for his unapologetic style and statement red carpet looks. Despite this year’s Emmy Awards being held digitally, porter didn’t hold back from bringing his show-stopping outfits to the event, wearing a custom-made ensemble by Saudi label, Ashi Studio. The actor, who was nominated for the award for outstanding lead actor in … Continue reading FASHION | Billy Porter’s 2020 Emmys Ensemble Was Custom – Made By This Saudi Label
Bahrain’s interior ministry said on Sunday it had foiled a ‘terrorist attack’ early this year that was backed by Iran’s Islamic Revolutionary Guard Corps. The statement confirmed earlier media reports about an alleged planned attack and added a timeframe. Earlier on Sunday Saudi state television Al-Ekhbariya and Bahraini newspaper Akhbar Al-Khaleej reported that interior ministry … Continue reading NEWS | Bahrain Says Foiled ‘Terrorist Attack’ Backed By Iran In Early 2020
PARIS | FRANCE – LVMH said on Friday it had submitted its troubled takeover of Tiffany, which is now at the centre of a legal dispute between the two groups, for EU approval as it seeks to counter accusations that it deliberately stalled antitrust proceedings. The French group’s $16 billion acquisition of the U.S. jeweler … Continue reading BUSINESS | LVMH Submit Disputed Tiffany Takeover For EU Clearance
The Saudi General Authority of Civil Aviation (GACA) has released its updated traveler’s guide, which accommodates the ongoing pandemic after approving international travel for some exceptional cases. The new regulations entail that non – Saudis who are entering the Kingdom must provide a medical report of their coronavirus disease (COVID-19) test and its negative results, … Continue reading TRAVEL | What You Need To Know About Travel Guidelines In Saudi Arabia