German automaker BMW says its profits this year will be “well below” last year’s due to higher raw materials prices, the costs of compliance with tougher emissions requirements and unfavorable shifts in currency exchange rates.
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The Munich-based automaker also said Wednesday it faced increased uncertainty due to international trade conflicts that could lead to higher tariffs.
The company forecast a profit margin of 6 to 8 percent for its automotive business, short of the long-term strategic target of 8 to 10 percent, which it said still “remains the ambition” for the company given “a stable business environment.”
BMW made 7.2 billion euros ($8.2 billion) in net profit last year, down 17 percent from 2017, when the company had a gain of $1 billion from U.S. tax changes.
