BMW may revise forecasts - Independent Online
Munich - BMW AG said slowing sales in China may force it to revise this year’s profitability goals, challenging new Chief Executive Officer Harald Krueger as he seeks to defend his lead in the global luxury car industry. Earnings before interest and taxes from automaking are still expected at 8 percent to 10 percent of sales, though “if conditions on the Chinese market become more challenging, we cannot rule out a possible effect” on the forecast, the Munich-... BMW cut production by 16 000 cars in China, its biggest market, Chief Financial Officer Friedrich Eichiner said on Tuesday. The second-quarter margin on automaking fell short of analysts’ expectations due to a combination of the ageing 7-Series sedan, due to be refreshed this year, and slowing growth in China, Raab said. The company’s second-quarter margin on automaking narrowed to 8. 4 percent, the lowest level since 2009, compared with 11. 7 percent last year. BMW’s margin trailed Mercedes-Benz and Audi, which reported respective returns on sales of 10. 5 percent and 9. 8 percent. The shares fell as much as 2. 4 percent, trading down 1. 2 percent to 90. 5 euros at 11:01 a. m. in Frankfurt. Source: www.iol.co.za
