BMW: adjusts forecasts for fiscal year 2024
(CercleFinance.com) - BMW's Board of Directors has adjusted its forecasts for the 2024 financial year.
This adjustment has been made following delivery stoppages and technical actions related to the Integrated Braking System (IBS), which is being supplied by a supplier.
Delivery stoppages for vehicles will have a negative effect on worldwide sales in the second half of the year. IBS-related technical actions affect more than 1.5 million vehicles, resulting in additional warranty costs in the triple digits in the third quarter.
Demand in China is also affecting sales volumes.
The Group expects deliveries to fall slightly year-on-year (compared with a slight increase).
It is targeting an EBIT margin for 2024 in the range of 6% to 7% (previously: 8% to 10%) and a return on capital employed (RoCE) of between 11% and 13% (previously: 15% to 20%).
Free cash flow in the automotive sector is estimated at over 4 billion euros for fiscal 2024.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
This adjustment has been made following delivery stoppages and technical actions related to the Integrated Braking System (IBS), which is being supplied by a supplier.
Delivery stoppages for vehicles will have a negative effect on worldwide sales in the second half of the year. IBS-related technical actions affect more than 1.5 million vehicles, resulting in additional warranty costs in the triple digits in the third quarter.
Demand in China is also affecting sales volumes.
The Group expects deliveries to fall slightly year-on-year (compared with a slight increase).
It is targeting an EBIT margin for 2024 in the range of 6% to 7% (previously: 8% to 10%) and a return on capital employed (RoCE) of between 11% and 13% (previously: 15% to 20%).
Free cash flow in the automotive sector is estimated at over 4 billion euros for fiscal 2024.
Copyright (c) 2024 CercleFinance.com. All rights reserved.