BMW Anticipates Lower Profit Margin and Earnings in Q4 and Fiscal Year
Munich, Germany - BMW released preliminary results indicating that its earnings before taxes in the fourth quarter of 2022 are expected to fall below the corresponding period last year. The company also anticipates its full-year profit margin to be within the lower range of its target of 6-7%.
According to slides shared on BMW's website, rising inflation and increased fixed costs have impacted earnings in the final three months of the year. This has resulted in a year-over-year decline in margins. The slides were presented during a non-public investor call held during a closed period ahead of the company's annual results announcement scheduled for March 14.
In September 2022, BMW revised its profit margin outlook to 6-7% from the previous 8-10%. The company reported a 61% decrease in its third-quarter profit last year, falling short of analyst expectations due to declining sales in China and braking system issues.