Aumovio cuts outlook as BMW settlement weighs on earnings (updated)
UPDATE 1-Aumovio cuts outlook as BMW settlement weighs on earnings Adds details on outlook, settlement amount, €1 bln order, shares, analyst comment
By Amir Orusov
July 30 (Reuters) - German automotive supplier Aumovio AMV0n.DE cut its full-year outlook on Thursday due to a €350 million ($403.31 million) BMW BMWG.DE settlement, despite underlying second-quarter earnings beating expectations.
Aumovio now expects an adjusted operating profit margin between 3.0% and 4.0% for full year 2026, down from 3.5% to 5.0%; below Vara consensus of 4.2%.
Adjusted sales forecast narrowed to €17.0-17.5 billion from €17.0-18.5 billion previously.
Aumovio to pay BMW €350 million in two instalments in Q3 and Q4 2026, with the charge impacting second-quarter earnings.
Settlement with BMW ends all claims linked to a legal dispute over an integrated brake system warranty case.
Excluding the settlement impact, Q2 adjusted EBIT would have been €152 million, with a 3.5% margin, above consensus of €137 million and 3.1%.
BMW to award Aumovio new contracts worth more than €1 billion as part of a broader technology partnership.
"All in all a solid quarter for Aumovio, coming in ahead of expectations in the second quarter as well as the long feared settlement with BMW which came in lower than market expectations", JPMorgan said.
Aumovio shares closed 10.7% higher.
($1 = 0.8678 euros)
(Reporting by Amir Orusov; Editing by Susan Fenton, Kirsten Donovan)
((Amir.orusov@thomsonreuters.com))