BERLIN (Reuters) -BMW has cut its 2025 earnings forecast due to slow growth in China and U.S. import tariffs, the luxury automaker said on Tuesday.

The German company said it expected a slight decline in group earnings before tax, compared with previous guidance that they would be around the same level as in 2024.

It also reduced the expected return on capital employed (ROCE) for its automotive business to 8% to 10%, down from 9% to 13% previously.

BMW said it now expected that a high three-digit-million in reimbursements of customs duties from U.S. and German authorities would now be paid in 2026, and not 2025.

This would reduce expected free cash flow at its automotive business to above 2.5 billion euros ($2.9 billion), about half of the 5 billion euros previously assumed.

The company said its dividend payout ratio would remain in a range of 30% to 40% of net income attributable to BMW AG shareholders and that it remained committed to its share buyback programme.

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