German luxury car manufacturer BMW Group announced that it has made a downward revision in its financial forecasts for 2026 due to the contraction in the Chinese market, the increasing costs of conflicts in the Middle East and accelerated corporate restructuring processes.
In the statement made by the BMW Group, it was stated that a “significant decline” is now foreseen in the consolidated pre-tax profit, which was previously expected to be a “slight decrease”.
In the statement of the Munich-based company, it was stated that the automotive division’s profit before interest and tax (EBITDA-EBITDA) margin expectation was reduced from 4-6 percent to 1-3 percent.
In the statement, it was stated that two main factors stood out for BMW management to reduce its forecasts, and it was pointed out that the contraction in China, the company’s largest single market, continued to accelerate in the second quarter of the year. In the statement, it was emphasized that positive sales graphics in Europe and the USA were not enough to compensate for the loss in China.
It was stated in the statement that permanent high energy prices due to continuing instability in the Middle East directly increased the company’s production costs, and that geopolitical uncertainties negatively affected consumer trends on a global scale.
“Contrary to the company’s previous assumptions, the effects of the conflict in the Middle East continue. First, persistently high energy prices are increasing the company’s costs. Second, the uncertainty resulting from the conflict is increasingly affecting consumer behavior in many markets around the world,” the statement said. evaluation was made.
Following the announcement, the company’s shares lost 11 percent of their value.
Following the announcement, BMW shares traded on the Frankfurt Stock Exchange lost more than 11 percent in value in the first transactions and reached 60.08 euros, the lowest level after September 2020.
Shares, which compensated for some of their losses during the day, were traded at 63.55 euros, with a 6 percent decrease at 13.00 Turkish lira. With this decline, BMW’s total share value loss since the beginning of the year approached 33 percent and the company’s market value fell below 39 billion euros.
BMW Group will share its interim report containing the first half financial results of 2026 with the public on July 30, 2026.
Automobile Magazine – English News
Source link 2026-06-17 21:37:00
