PressClub Global · Article.
BMW Group raises sales volume and earnings forecast for 2010
Tue Jul 13 11:22:09 CEST 2010 Press Release
Business performance better than expected +++ BMW Group expects sales volumes in 2010 to rise by around 10% to over 1.4 million units +++ Full-year EBIT margin of over 5% expected for the Automobiles segment +++ Financial Services segment aiming for earnings considerably above last year– return on equity of over 18% achievable in 2010 +++
send an e-mail
This article in other PressClubsShow all
Business performance better than expected
BMW Group expects sales volumes in 2010 to rise by around 10% to over 1.4 million units
Full-year EBIT margin of over 5% expected for the Automobiles segment
Financial Services segment aiming for earnings considerably above
return on equity of over 18% achievable in 2010
Munich. Improved business conditions on the international automobile markets mean that the BMW Group now expects to report much better second-quarter and full-year earnings than previously forecast.
13.1% more cars were sold during the first half of the year compared to the same period last year.
For the full year, the company expects sales volumes to rise by around 10% to more than 1.4 million units. In addition to the recovery of the worldwide markets, strong demand for new models such as the BMW 5 Series and BMW X1 has had a positive impact on the business development.
In view of the improved situation on the car markets, the BMW Group now forecasts a full-year EBIT margin of over 5% for its Automobiles segment.
As a result of attractive market conditions and a less acute risk situation, the Financial Services segment is striving for a significant increase in pre-tax earnings with a target return on equity of over 18 %.
Based on this much improved outlook, the BMW Group expects the full-year profit before tax to rise more sharply than previously forecast.
A significant improvement in Group earnings had already been predicted for 2010. The Automobiles segment was forecast to achieve solid, single-digit sales volume growth and an EBIT margin within a low, single-digit percentage range. An improvement in Financial Services segment earnings had also been forecast.
Given that numerous economic risks remain in the second half of the year, the new outlook is based on the condition that the economic recovery continues and that general business conditions are not significantly dampened.
For the year 2012, the BMW Group continues to target an EBIT margin of between 8% and 10% and a return on capital employed (ROCE) in excess of 26% for its Automobiles segment. The Financial Services segment is aiming to achieve a return on equity of at least 18%.
The Quarterly Report to 30 June 2010 will be published on 3 August 2010.
For questions please contact:
Corporate and Governmental Affairs
Mathias Schmidt, Finance Communications
Telephone: (+ 49 89) 382-24118, Fax: (+ 49 89) 382-24418
Marc Hassinger, Business and Finance Communications
Telephone: (+49 89) 382-23362, Fax: (+49 89) 382-24418
The BMW Group
With its three brands -- BMW, MINI and Rolls-Royce – the BMW Group is one of the world’s most successful premium manufacturers of cars and motorcycles. It operates internationally with 24 production sites in 13 countries and a global sales network with representation in more than 140 countries.
During the financial year 2009, the BMW Group sold approximately 1.29 million cars and more than 87,000 motorcycles worldwide. The profit before tax for 2009 was euro 413 million, revenues totalled euro 50.68 billion. At 31.December 2009, the BMW Group had a workforce of approximately 96,000 employees.
Long-term thinking and responsible action have long been the foundation of the BMW Group’s success. Striving for ecological and social sustainability along the entire value-added chain, taking full responsibility for our products and giving an unequivocal commitment to preserving resources are prime objectives firmly embedded in our corporate strategies. For these reasons, the BMW Group has been sector leader in the Dow Jones Sustainability Indices for the last five years.