BMW Lowers Guidance Amid Coronavirus Damage

   By Jessica Sier

BMW AG revised its guidance down on Wednesday as the spread of coronavirus continues to damage global supply chains and consumer demand.

The German car maker expects group profit before tax for the year to come in significantly lower than in 2019, and its earnings before interest and taxes margin will likely slump 4% to between 2% and 4% for the full-year period.

Delivery volumes to all major markets will be lower in 2020, particularly the automotive segment, the company said, adding that uncertainty regarding the effects of the coronavirus makes it difficult to accurately forecast its performance for 2020.

"Based on the latest developments, the BMW Group expects the spread of coronavirus and the required containment measures to have a negative impact on delivery volumes in all major markets over the year 2020 as a whole," said the company in a statement.

The shift in guidance comes as most major car manufacturers and their suppliers suspend operations in their plants across Europe.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

March 18, 2020 04:15 ET (08:15 GMT)

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