BMW expects its automobile delivery segment’s performance to reduce in 2020 compared with the previous year and has projected its EBIT margin at 0-3pc for the rest of the year.
Citing the negative impact of COVID-19, the automobile manufacturer has also projected its motorcycle deliveries to drop and the EBIT margin for the segment at 3-5pc for the rest of the year. The automaker is also planning to reduce its overall workforce due to the uncertainty around the COVID-19 pandemic’s resurgence recently.
In the first nine months of the year, BMW’s automobile shipment declined by 12.5pc to 1.6 million units from 1.8 million units during the same period in 2019. Its motorcycle shipment also fell by 5.4pc to 129,599 units from 136,932 units in the same period under comparison.
In Q3 2020, the firm’s automobile shipments grew by 8.6pc to 675,592 units from 621,981 units in Q3 2019. Its motorcycle shipments also rose by 20.9pc to 52,982 units from 43,744 units during the period under review.
BMW’s total revenue in January-September dropped by 7.1pc to €69.5bn (82.5bn) from €74.8bn during the same months in 2019. Its revenue in Q3 2020 fell by 1.4pc to €26.2bn from €26.6bn in Q3 2019.
The company’s EBIT in January-September dropped by 48.2pc to €2.6bn from €5bn during the same period last year, while its EBIT in Q3 2020 declined by 15.9pc to €1.9bn from €2.2bn in Q3 2019.
(€1 = $1.19)