German automobile, motorcycle, and engine manufacturing company BMW Group (BMWYY) cautioned that the current conditions are challenging. Despite delivering group revenues for 2018 of 97.48B euros, on par with last year's performance, BMW said its performance in 2018 "did not meet our usual high standards."
CHALLENGING ENVIRONMENT: "The challenging environment left its mark on the entire automotive industry last year: I am referring, in particular, to the trade dispute between the U.S. and China – but also the challenge of regulations and the negative trend in exchange rates and commodity prices. All of these factors impacted the results of vehicle manufacturers across the board," said Dr. Nicolas Peter, a member of the BMW board.
GUIDANCE: The German luxury car maker said that it expects group pre-tax profit to fall by more than 10% in 2019. BMW also outlined an expansive 12B euro cost saving and efficiency plan to help fund technology investment and currency costs. Just last week, BMW chairman Harald Krüger said, "The challenges facing the entire sector are unlikely to diminish in the coming months. Great efforts will, therefore, be needed across the entire Group to help shape the sector’s transformation under such conditions." The European automotive maker said it expects the operating margin in its automotive division to fall to between 6%-8% in 2019, below what the company's goal of 8%-10%.
PRICE ACTION: Shares of BMW are down 4.5% to $27.21 in afternoon trading.
OTHER VEHICLE MAKERS FALL: Shares of domestic and foreign automakers are also lower, including Ford (F), General Motors (GM), Fiat Chrysler (FCAU), Honda (HMC), Toyota (TM), Nissan (NSANY), and Volkswagen (VLKAY).
BMW
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Ticker changed to STLA
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Honda
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Symbol is now VWAGY
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