Electric cars are set to become increasingly important at BMW in the future.
(Photo: IMAGO/TT)
Munich Despite special costs for a business in China, BMW expects a good performance in its core business this year. The Munich-based company wants to increase car deliveries slightly, as the Dax group announced on Wednesday. At BMW, this means an increase of between one and five percent compared to the previous year’s figure of 2.4 million vehicles. Selling prices are likely to remain stable.
The management around CEO Oliver Zipse assumes a profit margin before interest and taxes of eight to ten percent in the car division. Last year it was 8.6 percent. The forecast includes additional special costs of 1.4 billion euros from the majority takeover of the Chinese joint venture BMW Brilliance (BBA).
Last year, many special effects had distorted the company’s figures due to the takeover, including the revaluation of the shares previously held by BBA, which resulted in special income of 7.7 billion euros. This effect is missing this time in the financial result, which is why BMW estimates significantly less for the pre-tax profit than the record high 23.5 billion euros from last year.
In addition, BMW expects a less favorable situation for the remarketing of leased cars that have been taken back. BMW intends to increase the number of employees slightly this year – the number of employees should therefore increase by one to five percent, starting from 149,475.
The Munich carmaker BMW is up one percent in pre-market trading at Lang & Schwarz, making it one of the frontrunners in the Dax.
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