|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||70.83 - 72.39|
|52 Week Range||68.11 - 93.87|
|Beta (3Y Monthly)||0.80|
|PE Ratio (TTM)||5.81|
|Earnings Date||May 7, 2019|
|Forward Dividend & Yield||4.00 (5.42%)|
|1y Target Est||93.69|
Shares of automaker General Motors fell more than 3 percent Wednesday after BMW warned of lower profits thanks to international trade tension and potential ripple effects from Brexit . While the company's stock has trended slightly upward over the years, any individual stock can over- or under-perform and past returns do not predict future results. Some analysts anticipate problems for the auto industry overall .
BMW executives said the industry faces a fiercely competitive environment, dogged by questions about how tariffs and trade tension between the U.S., China and Europe could affect supply chains, manufacturing and sales.
Shares of auto makers fell Wednesday, pulled down by Germany-based BMW AG's warning of a significant drop in profits this year. Ford Motor Co.'s stock slumped 2.4%, General Motors Co. shares shed 2.9% and Fiat Chrysler Automobiles N.V. shares dropped 1.3%. BMW's Germany-listed shares tumbled 5.3%, with the company blaming its profit warning on higher costs associated with stricter emissions regulation, heavy investment in electric and self-driving cars, currency translation effects, higher raw materials and global trade tensions. The auto maker stock declines come as the S&P 500 slipped 0.3%.
AG said global economic and trade pressures as well as high investment costs would contribute to a significant decrease in the German luxury car maker’s profit this year. , BMW’s finance chief, said.
In the past BMW’s autos unit unfailingly reported an operating profit margin of at least 8 percent. BMW blotted its copybook in 2018 when the automotive business only managed a 7.2 percent return on sales, and 2019 could be even worse. On Tuesday the company set an operating margin range of 6 to 8 percent.
The shares fell the most since September after the German luxury carmaker said Wednesday that pretax profit is expected to decline by more than 10 percent this year. BMW is responding by stepping up a savings program with plans to cull models, reduce development times by as much as one third and hold the workforce steady this year. BMW’s weak outlook is a “troublesome” sign for the sector after the carmaker looked better-placed than competitors with a number of strong new models and the luxury-car market in China holding up, Bernstein analyst Max Warburton wrote in a note.
The carmaker said international trade conflicts, rising manufacturing costs and new emissions regulators would all weigh on 2019 profits, forcing it to accelerate a cost-cutting plan that will save the group around €12 billion ($13.6 billion) by 2022. BMW posted full-year pre-tax earnings of €9.12 billion last week, down 7.9% from 2017, thanks in part to currency headwinds and accelerated investments in electric vehicles. In this environment, a sustained high level of profitability is crucial if we are to continue driving change," said BMW board member Nicolas Peter.
BMW shares traded 4.7% lower at 72.14 euros at 1010 GMT. At the same time, BMW said it will continue to invest heavily into electric and self-driving cars, as well as other new technologies. BMW said it expects the closely-watched operating profit margin in its auto segment to be between 6% and 8%, below its long-term goal of 8% to 10%.
BMW AG and Mercedes-Benz said on Saturday they will lower their prices in China, after the government announced it will reduce the country's value-added tax (VAT) starting on April 1. The discounts come as China endures a shrinking market for automobiles as the economy slows. BMW said it would reduce prices for both domestically produced and imported models, including the locally-made BMW 3 series and BMW 5 series, along with the BMW X5 and BMW 7 import models.
Japanese carmaker Honda said any delay to Brexit must be long enough to give businesses stability whilst BMW is still preparing for a "worst-case scenario" no-deal Brexit after lawmakers backed postponing Britain's exit from the EU. The country's car sector, which employs more than 850,000 people, has quickly gone from a manufacturing success story to posting drops in investment, sales and output. Honda, which builds just over 10 percent of Britain's 1.5 million cars, announced earlier this year that it would close its factory, in the biggest blow to the sector in many years, but said the decision was not due to Brexit.
“The challenges facing the entire sector are unlikely to diminish in the coming months,” Chief Executive Officer Harald Krueger said Friday in a statement presenting preliminary results. The company will also reorganize its management board, consolidating sales of BMW, Mini and Rolls-Royce under a central position headed by Pieter Nota, who was responsible for BMW brand sales so far. Peter Schwarzenbauer, leading Rolls-Royce and Mini cars as well as digital businesses at the Munich-based carmaker, will leave the company at the end of October when he turns 60.
BMW plans to increase efforts to improve efficiency and reduce product complexity. BMW AG (BMW.XE) on Friday reported a sharp drop in profits and said it will double-down on efforts to improve efficiency as it expects headwinds that have buffeted the global auto industry over the past year to continue. BMW said its earnings also took a high three-digit million euro hit from higher raw materials prices and exchange-rate effects.
BMW has disclosed a decline in 2018 profits, with the German automaker warning that “strong headwinds” from regulatory changes and the US-China trade spat are “unlikely to diminish” this year. The automaker ...
“We’re going to work hard on our cost structures,” Audi Chief Financial Officer Alexander Seitz said Thursday at a press conference in Ingolstadt, Germany. Part of the plan is a reduction of Audi’s workforce by as much as 15 percent over the next five years through early retirement and leaving vacant positions unfilled to help save costs, Handelsblatt reported. Audi has a job guarantee preventing forced layoffs until 2025.
For businesses, British lawmakers’ rejection of a proposed deal on the terms of the U.K.’s exit from the European Union prolongs uncertainty that has exasperated executives for months. Companies have girded for a messy divorce for much of the past year, spending millions of dollars stockpiling goods, adjusting for different regulations and working to mitigate potential disruptions at the border in the event the U.K. leaves the EU without agreeing ongoing trade arrangements. Parliament’s rejection of proposed divorce terms Tuesday keeps alive the prospect of a no-deal British exit and makes it more likely that the scheduled March 29 exit will be delayed.
Co’s (7201.TO) luxury-car brand Infiniti will stop production in Sunderland in the U.K. as part of a withdrawal from Western Europe. The Hong Kong-headquartered company said Tuesday that it will stop producing its Q30 and QX30 models in Sunderland, northeast England, by the middle of this year. The news comes after Nissan said last month that it abandoned plans to produce its new X-Trail model in Sunderland, citing uncertainty surrounding Brexit.
Let's talk about the popular Bayerische Motoren Werke Aktiengesellschaft (FRA:BMW). The company's shares maintained its current share price over the past couple of month on the DB, with a relativelyRead More...
The company said it exported 234,689 units of its X model sport utility vehicles and coupes from its Spartanburg, South Carolina, plant during 2018. "Despite...the ongoing uncertainty regarding trade and tariffs, plant Spartanburg is still positively contributing to the U.S. balance of trade," said Knudt Flor, president and CEO of BMW Manufacturing Co LLC. BMW's U.S. export report comes at a time when U.S. President Donald Trump has threatened to saddle imported cars and auto parts with steep tariffs of up to 25 percent.