FRANKFURT — BMW on Tuesday lowered the outlook for the profitability of its automotive and motorcycles divisions, citing worse-than-expected demand which has been hit by measures to contain the coronavirus.
BMW said it expects the earnings before interest and taxes margin for the automotive segment to fall within a range between 0 percent and 3 percent this year, adjusting its outlook from a previously expected margin range of between 2 percent and 4 percent.
“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 carmaker said, cautioning that matters could still get worse.
“The updated guidance does not, in particular, include, a longer…