BMW ADRs Tumble On Full-Year Outlook Cut, China Demand Woes Add BMW to the growing list of European automakers slashing forecasts due to softening demand, especially in China. BMW's ADRs fell 5% late in the US cash session after news that the struggling automaker slashed its full-year automotive profit outlook to around breakeven and warned of delivery declines.
The European automaker said it would accelerate restructuring and phase out older models. It now expects automotive operating margin to range from -.5% to to .5% for the year, down from its previous forecast of 1% to 3% . BMW attributed the profit downgrade to fourth-quarter charges from expanded restructuring and a "decision to expand and intensify portfolio and structural measures." "The portfolio measures stem from the sustained high demand for Neue Klasse models, to which the BMW Group has responded by introducing additional production shifts at an early stage.