Latest news with #financial guidance
Reuters
2 days ago
- Automotive
- Reuters
Audi cuts forecast over US tariffs and restructuring costs
July 28 (Reuters) - German automaker Volkswagen's premium brand Audi lowered its full-year financial guidance on Monday, citing the impact of higher U.S. import tariffs and ongoing restructuring costs. The Ingolstadt-based company now expects revenue of between 65 billion euros and 70 billion euros ($76 billion and $82 billion), down from its previous forecast of 67.5 billion euros to 72.5 billion euros. Audi also cut its operating margin forecast to 5% to 7%, compared to the earlier range of 7% to 9%. Audi said it is still assessing the implications of the trade deal reached between the United States and the European Union on Sunday. The agreement set a 15% baseline U.S. tariff on imports from the EU, including cars, which had previously faced customs duties of 27.5%. "Should the 15% tariff stay in place long-term, it would still put Audi at a competitive disadvantage, because its key peers have a more pronounced U.S. production footprint," said Fabio Hoelscher, an analyst from Warburg Research. Audi is among the carmakers most exposed to U.S. tariffs as it has no manufacturing facilities in the United States. Although the deal provides clarity on the new tariff regime, enabling better operational and strategic planning, the 15% rate still represents a structural shift from the 2.5% rate before U.S. President Donald Trump took office, said Pal Skirta, equity analyst from Metzler Equities. That leaves German carmakers facing persistently higher U.S. tariffs on their exports and long-term competitiveness challenges, he said. The Volkswagen Group also cut its full-year guidance on Friday after taking a $1.5-billion tariff hit in the first half of 2025. Global automakers have booked billions of dollars of losses and some issued profit warnings due to U.S. import tariffs. The European industry is also facing stiffening competition from China, and domestic regulations aimed at speeding up the electric-vehicle transition. ($1 = 0.8535 euros)
Yahoo
4 days ago
- Business
- Yahoo
7 Ways You Can Still Go Broke While Earning a High Salary
When you scroll through the job market, you typically aren't looking for the best places to make friends, but rather where you will make the most money. Your earning potential post-graduation and pre-retirement is largely dependent on your career path and years of experience, but also on how you manage your finances. Find Out: For You: High salaries are often linked with financial stability and wealth accumulation that allow you to easily pay off your student loans and credit card debt while still having enough left over to invest and live comfortably. However, earning a high salary doesn't automatically shield you from financial woes or even having to file for bankruptcy. Unfortunately, there are several ways you can find yourself struggling financially, even after years of raking in a substantial income. Here are the pitfalls that can lead to financial instability despite a high salary. You Mismanage Your Money The cornerstone of financial stability is effective money management and the ability to develop good spending habits. High earners often fall into the trap of poor budgeting, or don't bother tracking their spending to see where they are hemorrhaging cash needlessly. Without a clear understanding of where their money is going, they may end up spending more than they earn, leading to a gradual erosion of their bank accounts, emergency funds and more. If you feel like you need some help in this area, you can get a fresh start by seeking out the help and guidance of a financial advisor. Investing, saving and retirement planning can be complex, and high earners are not always equipped to manage their finances effectively. Not seeking professional advice can lead to missed opportunities in investments, tax planning and wealth management, resulting in less-than-optimal financial growth or even losses. Up Next: Lifestyle Inflation Creeps In A common issue for high earners is lifestyle inflation, where their spending increases with their income instead of living beneath their means to save. This might include buying a more expensive home or car or indulging in luxury vacations. This is not to say you can't treat yourself with what you've earned. However, though these expenses may seem manageable on a high salary, they create a financial burden that can be unsustainable in the long run, especially if the income level changes. If you accrue a lot of debt with high interest rates and then suffer a job loss, you may have to seek out a bankruptcy lawyer sooner than you would think. Lifestyle inflation is also often a direct consequence of keeping up with the Joneses. High earners are frequently subjected to social peer pressures that can lead to unwise financial decisions. This includes keeping up appearances, engaging in expensive activities or purchasing luxury items impulsively. Such behaviors can lead to significant financial drains. Unlike planned luxury spending, which can be accommodated within a budget, impulse purchases and constantly giving in to social expectations can create a pattern of spending that outpaces even a high income. You Don't Save or Invest Nearly Enough for the Future Despite a high income, you might ignore the importance of saving and investing, or think you can just start doing that more later. Failing to set aside a portion of your income for the future in a high-yield savings account or emergency fund can lead people to go bankrupt should they suffer a financial shock. You Neglect Retirement Planning A high salary can create a false sense of security, leading some to neglect saving for retirement. Without adequate savings and investments earmarked for retirement, you could have to work well past the age of 65. It's never too soon to start investing in 401(k) plans, IRAs or other retirement accounts. You Can't Dig Your Way Out of Debt High earners are not immune to debt, and in some cases, their high income can lead to overconfidence in borrowing or spending. If you think the gravy train will never run out and you are swiping your credit card like there is no tomorrow, you could be in for a rude awakening financially. Significant amounts of debt, such as credit cards, car loans or a substantial mortgage can lead to high-interest debt and repayment obligations that quickly become a money pit from which you can't escape. You Have Inadequate Insurance Insurance is often overlooked as a crucial part of financial planning. If you make a lot of money, that doesn't mean you aren't susceptible to life's uncertainties such as a medical emergency or natural disaster. Without proper insurance coverage, you could find yourself facing hefty bills due to health issues, accidents or property damage, which can rapidly deplete your finances. You Ignore the Tax Man One critical aspect that high earners often overlook is the management of their tax obligations. If the IRS can bring down Al Capone, than even a higher income won't protect you if you don't pay your taxes properly. Remember, with a higher income, the tax liability also increases, sometimes significantly. Failure to plan for taxes or to understand the nuances of tax laws can lead to hefty dues and penalties. This negligence can erode wealth quickly, as a substantial portion of income may go toward settling unexpected tax bills, rather than being saved or invested. Final Take To GO The bottom line is that a high salary is not a guaranteed safeguard against financial instability. It requires prudent financial management, planning and an awareness of the potential pitfalls. The economy can be unpredictable, and high-paying jobs are not always secure. Economic downturns, job loss, industry shifts, medical expenses or company downsizing can lead to unexpected loss of income. High earners without a financial safety net can find themselves in a precarious position very quickly so make sure you plan for the worst while making the most. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on 7 Ways You Can Still Go Broke While Earning a High Salary Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
