BMW warns no-deal Brexit poses risk to earnings momentum

BMW warns no-deal Brexit poses risk to earnings momentum

BMW mentioned its full-year earnings will are available in on the higher vary of its steering, however warned a no-deal Brexit would value tons of of tens of millions of euros.

BMW expects its automotive revenue margin will probably be between 2 p.c and three p.c, the excessive finish of the vary it forecast for the yr, CFO Nicolas Peter mentioned Wednesday.

Free money stream will probably be clearly above the 1.5 billion euros ($1.eight billion) guided beforehand, he mentioned.

Whereas there’s optimism on earnings, the manager mentioned he’s involved about commerce talks between the European Union and the U.Okay. The tariffs on autos that will comply with a tough Brexit would value BMW a “mid-three-digit” million-euro quantity per yr, Peter mentioned.

BMW would attempt to offset the losses by elevating costs on vehicles imported to the U.Okay. and any Oxford, England-made Mini autos bought on the continent.

“It is some huge cash and we’ll should react,” Peter instructed reporters throughout a web based roundtable dialogue. He mentioned the measures wouldn’t absolutely compensate for the damages.

Brexit talks are hanging within the stability two weeks earlier than the U.Okay. will drop out of current buying and selling preparations with the EU. Leaders on either side have mentioned they’ll proceed with talks, however have warned that an settlement may not be reached.

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