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BMW says faces currency, tariff and raw material headwinds in 2019

BMW says faces currency, tariff and raw material headwinds in 2019
FILE PHOTO: A logo of the German luxury carmaker BMW is seen during the company's annual news conference in Munich, Germany, March 21, 2018. REUTERS/Michael Dalder/File Photo -
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MICHAEL DALDER(Reuters)
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FRANKFURT (Reuters) – BMW <BMWG.DE> expects headwinds from rising currency and commodities prices to reach a mid to high triple-digit million euro amount in 2019, Chief Financial Officer Nicolas Peter said in a statement on Monday.

BMW still aims to reach an operating margin in the automotive segment of between 8 percent and 10 percent, Peter told analysts at a presentation in Munich on Monday.

“Whether we achieve this in 2019 will depend on many different factors,” Peter said in remarks which were emailed to Reuters.

Tariffs, raw materials prices and the cost of putting expensive technologies in cars to reduce emissions will be a burden on earnings, BMW said.

Global tariffs between China and the United States will likely result in a charge in the mid three-digit million euro range in 2019, Peter said.

BMW further said goodwill and warranty issues will impact earnings in the fourth quarter.

(Reporting by Edward Taylor; Editing by Ludwig Burger)

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