The German automotive giant BMW, headquartered in Munich, is looking forward to a more optimistic outlook for the current year, based on its heavily booked order books.
The company has raised its revenue expectations, considering that the number of deliveries will increase. However, BMW is preparing to face headwinds in the second half of the year, leading to a revision of its cash flow projections.
German automaker BMW is wary of negative expectations
However, the market did not greet this news with enthusiasm, as the stocks experienced a decline of nearly 6%, making them among the major losers in the German DAX index.
BMW now anticipates achieving over six billion euros in free cash flow for the current year, after previously discussing expectations of around seven billion euros in May of this year.
The company attributed this decline to increased investments for the shift towards electric vehicles, in addition to expanding inventory levels to ensure parts availability.
You can also learn more about the prices of new and used BMW cars in Germany.
This is in addition to the additional costs related to inflation and supply chain challenges.
You can also follow the latest news in Germany today on a daily basis by subscribing to our free notification service.