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BMW Dials Back on Profit Outlook
BMW AG says its pretax profit in 2018 will top €10 billion, up only 1% from last year’s record, when group profits climbed 5%.
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BMW AG says its pretax profit in 2018 will top €10 billion, up only 1% from last year’s record, when group profits climbed 5%.
BMW is updating its lineup and adding a record number of new models to help boost sales. Last year the company generated record unit sales (+4% to 2.46 million vehicles) and revenue (+5% to €98.7 billion). But the company forecasts only a slight increase in both figures this year.
At the same time, BMW’s spending on electrified powertrains, autonomous driving and other mobility technologies will climb 15% to a record €7 billion ($8.6 billion) this year. The company reports it free cash flow shrank 23% to €4.5 billion last year and is expected to drop another 15% in 2018.
BMW sold 100,000 hybrid and all-electric cars in 2017. The company aims to hike that number to at least 140,000 units this year and push cumulative sales above 500,000 units by the end of 2019. The company reiterates its plan to introduce 25 electrified models by 2025, half of them all-electric vehicles.
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