BMW slumps after it cuts guidance, dragging EU carmakers

Porsche Automobil Holding SE

Yesterday 08:41

Updates with share moves across the sector
** German carmaker BMW BMWG.DE stock is down 6.8% after the company cut its guidance on Tuesday, as it drags European peers in its fall
** BMW said it now expects an operating margin in its core automotive segment of between 1% to 3%, down from 4% to 6% previously
** Company's group profit before tax is expected to fall significantly, which BMW defines as a decline of more than 15%, after previously forecasting a moderate drop
** "Incoming CEO might intend to clean the “deck”, but keep in mind that BMW calls since quarters the bottom of the market in China and that the warning is really substantial," a local trader writes

    ** German peers Mercedes  MBGn.DE and Volkswagen  VOWG_p.DE were down 3.4 and 2.5% respectively,
  

    ** Porsche Holding PSHG_p.DE and Porsche  P911_p.DE fall 2% and 1.6% respectively
  

    ** French-based Renault RENA.PA shares are down 1.7% while Milan-listed shares of Stellantis STLAM.MI  fall 1.8%
  
** BMW falls to the bottom of Germany's blue-chip index 

 (Reporting by Tristan Veyet)
 ((Tristan.veyet@thomsonreuters.com))