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Earnings and sales volume targets for full year
confirmed Adverse impact from exchange rate effects and start-up costs
Munich. The BMW Group remained on course in the second
quarter despite the adverse impact of on-going currency effects on the one hand
and market launch and production start-up costs for new models on the other. The
total number of BMW, MINI and Rolls-Royce brand cars delivered to customers rose
by 8.6% to a new record figure of 397,009 units (second quarter 2006: 365,547
units). Group revenues climbed by 11.3% to euro 14,683 million (second quarter
2006: euro 13,193 million).
Group earnings for the period from April to June were held
down more than expected as a result of the on-going weakness of the US dollar
and Japanese yen and higher raw material costs. In addition, launch costs for
new models and substantial expenditure for the development of even more
efficient and fuel-saving engines were incurred. “Thanks to the increased use of
Efficient Dynamics technology, approximately 40% of BMW and MINI brand cars sold
in Europe, will, from autumn onwards, emit a maximum of 140g CO2/km“, stated
Norbert Reithofer, Chairman of BMW AG’s Board of Management in Munich on
Wednesday. The profit before tax fell by 13.6% to euro 1,065 million (second
quarter 2006: euro 1,232 million). The net profit was euro 753 million (second
quarter 2006: euro 787 million/-4.3%) and earnings per share of common stock
amounted to euro 1.15 (second quarter 2006: euro 1.20).
Revenues for the six-month period rose by 7.3% to euro 26,634
million (first half-year 2006: euro 24,811 million). The profit before tax
amounted to euro 1,917 million (first half-year 2006: euro 2,528/-24.2%). It
should be noted that the previous year’s figure includes a one-off book gain of
euro 375 million from the partial settlement of the exchangeable bond on shares
in the British aero engine manufacturer, Rolls-Royce plc. Excluding this
exceptional item, the profit before tax would have decreased by only 13.4%.
Impact of adverse currency effects in 2007 higher than
expected
Although conditions remain difficult in some aspects, the BMW
Group nevertheless expects to make good progress over the coming months. In
particular, adverse currency effects are having a greater impact on earnings
than previously forecast. However, based on the BMW Group’s current assessment,
the negative impact will not exceed the previous year’s level.
Reithofer reaffirmed the company’s outlook for the current
financial year: “We are still aiming to achieve a pre-tax profit that, adjusted
for the one-off gain on the Rolls-Royce exchangeable bond, is above the record
level posted for the previous year. The company is heading towards a sales
volume growth rate in the high single-digit percentage range and a sales volume
of over 1.4 million vehicles“, he added. All three brands are forecast to
achieve new sales volume records.
Slight increase in workforce
The BMW Group had a worldwide workforce of 107,079 employees
at the end of the second quarter 2007, 0.9% more than one year earlier (106,150
employees).
Further additions to model range
The BMW Group introduced two new models onto the markets in
the period from April to June in the form of the BMW M5 Touring and the
three-door version of the BMW 1 Series. The previously announced 1 Series Coupé
will strengthen this model from autumn onwards. The fourth generation of the BMW
M3 will commence sales in September. As for the MINI brand, the MINI One and the
MINI Cooper D have been available on the market since April 2007. The MINI
Clubman will be launched in autumn.
Position as the world’s leading premium manufacturer
maintained
The BMW Group sold more cars on a quarterly and half-year
basis than ever before, thus asserting its position as the world’s leading
premium manufacturer. For the six-month period, the number of cars delivered
increased by 4.6% to 730,285 units (first half-year 2006: 698,470 units); for
the first time, therefore, more than 700,000 cars were sold during a six-month
period.
The number of BMW brand cars sold in the six-month period went
up by 4.2% to 622,415 units (first half-year 2006: 597,120 units). The sales
volume for the period from April to June rose by 7.1% to 336,230 units (second
quarter 2006: 313,823 units). The main impetus for this growth was driven again
by the BMW 3 Series, the sales volume of which rose by 13.3% to 288,256 units
(first half-year 2006: 254,338 units).
The MINI achieved a positive level of sales, with the
second-quarter sales volume rising by 17.6% to 60,598 units (second quarter
2006: 51,544 units). This performance represents a new high level for a single
quarter. The sales volume for the six-month period rose by 6.4% to 107,576 units
(first half-year 2006: 101,063 units). The new MINI has been available on all
major markets since March and the MINI brand continues to generate a very
high-value product mix. Some 12.5% of buyers decided to purchase the MINI One,
compared to 56.8% going for the MINI Cooper and 30.7% for the MINI Cooper S.
The sales volume of the Rolls-Royce brand was similar to the
previous year, with 294 Phantoms handed over to customers during the six-month
period (first half-year 2006: 287 units /+2.4%).
Automobile segment affected by adverse exchange rate
factors
The number of cars sold by the Automobile segment accelerated
in the second quarter. Segment earnings were again adversely affected by the
exchange rate effects and higher raw material prices referred to above. Further
factors were production start-up and market launch costs for new models as well
as the higher level of depreciation and research and development costs. Segment
revenues for the period from April to June increased by 10.2% to euro 14,257
million (second quarter 2006: euro 12,943 million). The profit before tax fell
by 15.4% to euro 801 million (second quarter 2006: euro 947 million).
Motorcycle segment earnings unchanged
The sales volume of the Motorcycle segment for the period from
April to June fell by 2.3% to 36,201 units (second quarter 2006: 37,052 units),
mainly due to pre-seasonal buying at the beginning of the year caused in
particular by the mild winter. On a six-month basis, the number of motorcycles
sold rose by 5.6% to a new record of 59,230 units (first half-year 2006: 56,103
units). Second-quarter revenues fell by 5.5% to euro 396 million (second quarter
2006: euro 419 million), whilst the segment profit before tax, at euro 56
million, was unchanged compared to the second quarter last year.
Financial services business remains on growth course
The Financial Services segment continued to perform well in
the second quarter 2007. The profit before tax rose by 5.0% to euro 189 million
(second quarter 2006: euro 180 million). The business volume of the segment in
balance sheet terms went up by 17.8% to reach euro 48,811 million at 30 June
2007. The number of lease and financing contracts in place with dealers and
retail customers at the end of the six-month period increased by 14.0% to
2,485,450 contracts. The proportion of new cars of the BMW Group leased or
financed by the Financial Services segment during the first half of the year was
44.0%; this was 1.9 percentage points above the proportion recorded for the
corresponding period in 2006.
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