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BMW It cut its 2024 profit guidance on Tuesday, citing technical issues that halted vehicle deliveries and continued sluggish demand in its key market in China.
The German automaker said it expected earnings before interest and taxes (EBIT) in 2024 to be 6% to 7%, compared with previous guidance of 8% to 10%.
The company’s shares fell 5.3% as of 1104 GMT following the announcement.
BMW said the cut was partly due to headwinds in its core automotive segment caused by delivery stops and technical actions related to integrated braking systems from suppliers.
BMW also said continued sluggish demand in China was affecting sales in the country, joining the ranks of automakers facing difficulties in the world’s second-largest economy.
The company also said it expected deliveries to fall slightly after previously expecting them to increase, but did not provide specific figures.
The company added that technical actions related to integrated braking systems affect more than 1.5 million vehicles and will result in triple-digit additional warranty costs in the third quarter.
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