BMW Expects Automotive Profitability in Line With Last Year as New Models Roll Out
By David Sachs
BMW Group expects a stable margin for its key automotive division this year but slightly lower group earnings as used-car demand falls and investments increase.
The German luxury-car maker, which released 2023 earnings last week, said Thursday that its automotive segment--BMW, Mini and Rolls-Royce--will experience a slight increase in demand this year as new models come on the market. As a result, BMW expects the key division's earnings before interest and taxes margin to finish 2024 between 8% and 10%, in line with last year's result of 9.8%
Pre-tax earnings will fall slightly this year for the group as its financial services division grapples with lower demand in the used-car market that will sap leasing revenue, BMW said. Electrification and digitization investments will also weigh on the result but are expected to peak this year, the company said.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
March 21, 2024 03:07 ET (07:07 GMT)
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