schema:articleBody
| - German high-end carmaker BMW reported Wednesday a net profit down only slightly on 2019 levels in the first quarter as the novel coronavirus slashed sales, but the comparison was distorted by a massive charge that hit the manufacturer last year. In January-March, BMW sold 21 percent fewer cars year-on-year at 477,000, even as its bottom line fell just 2.4 percent, to 574 million euros ($622 million). Now, "we are gradually ramping up our production again according to demand in each market," chief executive Oliver Zipse said, adding that "liquidity has absolute priority in this situation". The Munich-based group has slashed the amount it plans to invest over the course of 2020 from almost six billion to "less than four billion" euros, Zipse added. "In view of the current situation, we will either put certain projects on hold or subject them to further review," the BMW chief said. Late Tuesday, the carmaker cut its financial forecasts faced with a coronavirus crisis that has persisted for longer than it first hoped. It expects unit sales to be "significantly down" this year compared with 2019, prompting earnings to "deteriorate, particularly in the first half". And profit margins in the group's automotive segment will likely fall to a range between zero and three percent, rather than between two to four percent as previously expected. "Uncertainty surrounding the global spread of coronavirus and its consequences makes it difficult to accurately forecast," BMW said, sticking to its expectations of pre-tax profit "signficantly below" 2019 levels. Key European markets have seen car sales almost wiped out as lockdown measures to limit the coronavirus' spread brought large parts of daily life to a halt. In April, new car registrations collapsed by 97 percent in Britain and Italy and 89 percent in France. "The highest negative impact is expected in the second quarter of 2020," BMW said Tuesday. ys/tgb/cdw
|