German automaker BMW has revised its forecasts for the current fiscal year downwards. The corporation is hit hard by the corona crisis that is hampering car sales worldwide. Demand for cars has declined, especially in China.
BMW also closed the first quarter of the year with a 3.5 percent higher turnover of 23.3 billion euros. Gross profit also increased by almost 5 percent to 798 million euros, helped by a favorable comparison basis. Several one-off effects weighed on the results a year earlier. For example, at the time BMW had spent a considerable amount of money on settling an antitrust case.
BMW car sales, a key measure closely monitored by market connoisseurs, fell 6.4 percent. This was mainly due to the closing of many showrooms in March. According to BMW, the current quarter will be even less than the first quarter.
BMW expects group profit before tax to be “significantly lower” than in 2019, with the company expecting a recovery from the third quarter. BMW emphasizes that it does not consider possible developments such as a continued recession in major markets, more severe slowdown in China, tougher competition from the virus and potential implications caused by a second wave of infections and associated measures.
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