[BERLIN] BMW’s net profit slumped by over a third in 2024 to 7.68 billion euros (S$11.13billion), in line with market expectations, after weak sales in China and Germany as well as delivery hold-ups, because of problems with a brake, dented performance.
The premium carmaker expects its earnings margin for cars to be 5-7 per cent in 2025, at best a slight increase from last year’s 6.3 per cent, it said on Friday (Mar 14) anticipating intensifying trade wars and the continuation of tough competition in China.
Its forecast takes into account all tariffs imposed by March 12, the carmaker said, which include increased tariffs on US steel and aluminium imports and a 25 per cent duty on some vehicles from Mexico, including BMW’s.
The group proposed a higher payout ratio of 36.7 per cent, among the highest in its history, consisting of a dividend of 4.32 euros per preferred share for 2024, still down from 6.02 euros paid out for the previous year.
BMW cut its 2024 outlook to 6-7 per cent from 8-10 per cent in September because of slumping China sales and problems with a brake supplied by Continental, affecting 1.5 million cars.
Its fourth quarter net profit dropped 41 per cent, in line with warnings from the carmaker in January that higher fixed costs from unwinding inventory in the final three months, and inflation, would hit earnings. REUTERS
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