PressClub México · Article.
BMW Group combines successful core business with future-focussed strategic decisions
Fri Nov 04 16:27:30 CET 2016 Carpeta de Prensa
Third quarter: Net profit up 15 percent +++ Automotive segment: EBIT margin remains in target range +++ Full year 2016: Forecast reaffirmed +++ E-mobility: Over 100,000 electrified BMW vehicles on the streets today +++ E-mobility: BMW Group to expand electrification of core brands to include MINI and BMW X3 battery versions
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Zolveing Zuniga
BMW Group
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Author.
Zolveing Zuniga
BMW Group
Munich. The BMW Group continued to chart a course of profitable
growth in
the third quarter 2016 and revealed how the next stages
of its Strategy
Number ONE > NEXT will be implemented. As the
world’s leading provider of
premium products and services for
individual mobility, the BMW Group recorded
its best ever third
quarter sales volume and net profit figures. The company
also
published details regarding the second phase of its
electrification strategy.
“We posted new record earnings and continued to grow profitably
– thereby
maintaining a strong basis for the consistent
implementation of our strategy,”
said Harald Krüger, Chairman of
the Board of Management of BMW AG,
on Friday. “We are already
achieving measurable success in the areas in which
the entire
sector is judged, namely our successful electrification strategy,
with
more than 100,000 electric vehicles on the roads already
today, and our
consistent achievement of high profitability,
which enables us to finance future
investments from our own resources.”
Krüger continued: “BMW i has always stood for a great deal more
than
alternative powertrains: BMW i is our ‘spearhead of
innovation’, ensuring that the
BMW Group maintains its pioneering
technological role. We have already proved
this in the field of
electric mobility – and we continue to write our own
success
story in the fields of automated driving and digitalisation.”
Three years after the successful launch of BMW i, the BMW Group is
now ready
to present the second phase of its electric mobility
strategy. Alongside the
previously announced expansion of the BMW
i model range to include the BMW
i8 Roadster and the BMW iNEXT,
the BMW Group will press ahead with its plans
to systematically
transfer all-electric, battery-powered mobility to its core
brands.
The first step will be an all-electric MINI in 2019,
followed by an all-electric BMW
X3 in 2020.
“We are absolutely convinced that the mobility of tomorrow is
sustainable,” said
Krüger. “Years ago, we announced our
unambiguous commitment to electric
mobility and achieved
technological leadership in this field. Growing customer
demand
confirms that we are on the right track and that now is the right time
to
take the next steps.”
In the third quarter alone, the BMW Group delivered more than 18,000
electric
BMW i and BMW iPerformance vehicles to customers, twice
the figure achieved
in the same period last year. For the full
year 2016, the BMW Group expects to
sell more than 60,000
vehicles featuring either all-electric or plug-in hybrid
powertrains.
BMW Group posts best-ever figures for the first nine months of
2016
Third-quarter sales volume of the BMW Group’s three premium
brands
(BMW, MINI and Rolls-Royce) climbed by 7.1% to reach
583,499 units
(2015: 545,062 units). These figures mark a new
all-time high for a third quarter
and safeguard the BMW Group's
position as the world’s leading manufacturer of
premium vehicles.
Third-quarter revenues rose by 4.6% to € 23,362 million
(2015: €
22,345 million). Adjusted for exchange rate factors, revenues
increased
by 6.6%. At € 2,380 million, profit before financial
result (EBIT) was slightlyhigher than one year earlier (2015: € 2,354
million; +1.1%). Group profit before tax (EBT) improved by 13.8% to €
2,575 million (2015: € 2,263 million).
Net profit climbed by 15.3% to € 1,821 million (2015: € 1,579
million), a new
record for a third quarter.
Nine-month sales recorded by the Automotive segment rose by 6.2%
to
reach a new high of 1,746,638 units (2015: 1,644,810 units).
The strategy of
striving to achieve an evenly balanced
distribution of sales worldwide continued
to pay off, allowing
fluctuations in individual markets to be compensated.
In the first nine months, Group revenues grew by 3.0% to € 69,229
million
(2015: € 67,197 million). Profit before financial result
(EBIT) edged up by
2.2% to € 7,562 million (2015: € 7,400
million). Group profit before tax (EBT)
increased by 8.8% to set
a new record of € 7,741 million (2015: € 7,114 million).
Group
net profit rose by 11.7% to € 5,411 million (2015: € 4,844 million),
also
marking a new record for the first nine months of a year.
Automotive segment: EBIT margin within target range
Third-quarter revenues of the Automotive segment grew by 2.8%
to
€ 21,564 million (2015: € 20,970 million). As previously
reported, upfront
expenditure for projects and activities
connected with the implementation of
Strategy Number ONE >
NEXT will affect earnings more in the second half-year
than in
the first half-year. EBIT for the third quarter came in at € 1,837
million
(2015: € 1,912 million; -3.9%) million, resulting in an
EBIT margin in the
Automotive segment of 8.5% (2015: 9.1%), still
within the target range of
between 8 and 10%. At € 2,030 million,
segment profit before tax was
significantly higher than the
previous year (€ 1,845 million; +10.0%).
Nine-month segment revenues grew by 2.8% to € 63,250
million
(2015: € 61,513 million). EBIT increased to € 5,778
million (2015: € 5,525 million; +4.6%), resulting in an EBIT margin of
9.1%
(2015: 9.0%). Profit before tax climbed to € 6,041
million
(2015: € 5,323 million; +13.5%), the first time it has
exceeded six billion euro in
the first three quarters.
In the third quarter, sales of BMW brand vehicles rose by 6.4% to
reach a new
high of 493,379 units (2015: 463,739 units) for the
period. The equivalent ninemonth
figure of 1,479,936 units (2015:
1,395,780 units; +6.0%) also broke all
existing records. Tailwind
came from various sources, including contributions
made by the
BMW Group’s flagship model, the BMW 7 Series, and the BMW
X
models. Nine-month deliveries of the new BMW 7 Series were
65.8% up on
the previous year, outperforming all of its
predecessors during the launch period.
Additional momentum is
expected to come from the top model, the BMW
M760Li xDrive. Sales
of the BMW X1 in the nine-month period jumped by
82.0% to 149,670
units, while the BMW X3 recorded a 16.5% increase to
116,702 units.
Sales of BMW’s electrified models continue to grow –
particularly in Europe and
the USA. More than 40,000 BMW i and
BMW iPerformance vehicles had
been delivered to customers by the
end of September – and the upward trend is
rising steeply. In
September alone, sales of electrified BMW models exceeded
the
7,000 mark.
Including the new BMW 740e as well as the BMW 330e and
the
BMW 225xe Active Tourer launched in spring, the BMW Group
already offers
a total of seven vehicle models that are either
all-electric (such as the BMW i3) or
plug-in hybrids which
combine an electric motor and a combustion engine.
Moreover, the
additional version of the BMW i3 with significantly
extended
electric range that came onto the market in July has
also led to a noticeable
increase in demand.
MINI also increased higher sales figures for the third quarter, with
the number of
vehicles sold worldwide rising by 10.8% to 89,179
units (2015: 80,488 units),
including significant contributions
from the new MINI Clubman and MINI Convertible
models. Nine-month
sales of MINI climbed by 7.2% to 264,077 units.
Rolls-Royce Motor
Cars announced the best ever third quarter sales
performance in
the history of the company, up 12.7% on the previous year.
Demand
was seen across all Rolls-Royce models, combined with
significant
interest in Dawn and Black Badge Wraith and Black
Badge Ghost. Sales in the
nine-month period from January to
September totalled 2,625 units, up 0.8% on
the previous year.
This result is according to plan and the marque
remains
optimistic for a strong year in 2016.
The upward trend for the BMW Group in Europe continued. Nine-month
sales
in this region increased by 10.4% to 807,597 units.
Double-digit growth was
recorded in a number of markets,
including Great Britain (189,712 units;
+10.6%), France (62,340
units; +10.9%) and Italy (59,921 units; +17.7%).
Deliveries of BMW Group vehicles in Asia rose by 9.1% to 548,986
units during
the nine-month period, including sales on the
Chinese mainland, which grew by
10.7% to 379,461 units. In Japan,
sales volume rose by 9.5% to 55,408 units.
The number of vehicles sold in the Americas region between January
and
September was 6.5% lower at 338,005 units, including 269,884
units (-8.7%)
delivered to customers in the USA.
Continued sales volume growth for Motorcycles segment
The Motorcycles segment continues to perform well. Worldwide sales of BMW motorcycles and maxi-scooters during the three-month period from July to
September totalled 35,290 units, 3.8% more than the previous year.
Third-quarter segment revenues amounted to € 451 million
(2015:
€ 454 million; -0.7%). Earnings were also down on the previous
year,
mainly due to expenses incurred during the start-up phase
of a number of
projects connected with implementing BMW
Motorrad’s new strategy. EBIT
came in at € 32 million (2015: € 46
million; -30.4%), while profit before tax
also finished at € 32
million (2015: € 45 million; -28.9%).
The segment delivered 116,044 (2015: 112,411) motorcycles and
maxiscooters
to customers during the first nine months of the
year, an increase of
3.2% compared to the previous year. At €
1,650 million, segment revenues
were similar to the previous year
(2015: € 1,643 million: +0.4%). EBIT
amounted to € 224 million
(2015: € 273 million; -17.9%), while profit before
tax finished
at € 223 million (2015: € 271 million; -17.7%).
Financial Services segment continues to perform well
The Financial Services segment continued to grow its business during
the third
quarter, again setting new records. A total of 467,702
new contracts
(2015: 420,639 contracts: +11.2%) were signed
between July and September
in conjunction with financing and
leasing business. The number of lease and
financing contracts in
place with retail customers at the end of the reporting
period
increased to 4,599,674 contracts (30 September 2015:
4,227,586
contracts; +8.8%). Segment revenues rose significantly
to € 6,403 million
(2015: € 5,621 million), 13.9% higher than in
the previous year’s equivalent
three-month period. Profit before
tax rose by 22.9% to € 568 million
(2015: € 462 million).
In total, 1,341,792 (2015: 1,222,165) new contracts were signed
during the
first nine months of the year relating to financing
and leasing business, 9.8%
more than the previous year. Segment
revenues were 6.2% higher at € 18,940 million (2015: € 17,833
million). Profit before tax grew by 8.2% to
€ 1,641 million
(2015: € 1,517 million).
Employee numbers increased
The workforce grew by 3.9% year-on-year as at 30 September. At the
end of
the reporting period, 126,013 people were employed
worldwide
(2015: 121,316 people). The BMW Group continues to
concentrate its
recruitment efforts on attracting the engineers
and skilled staff, including
software and IT experts, who are
needed to keep pace with the constantly
growing demand for the
company’s vehicles and to create the innovations which
will
become the technologies of tomorrow.
BMW Group on course to achieve its financial targets for 2016
The BMW Group is confident it will achieve its projected targets for
the current
financial year – largely thanks to its strong brands,
its attractive product portfolio
and the expectation that
international automobile markets will continue their
generally
upward trend. These favourable factors contrast with high levels
of
upfront expenditure for new technologies, fierce competition
and rising
personnel expenses. The global political and economic
environment is expected
to remain volatile.
The BMW Group reaffirms its targets for the full year. “We forecast
slight
increases and hence new record figures for Automotive
segment sales
volume and profit before tax in 2016,” stated
Krüger. With its three premium
brands – BMW, MINI and Rolls-Royce
– the BMW Group is firmly intent on
remaining the world's leading
manufacturer of premium vehicles in 2016.
Automotive segment revenues are also set to grow slightly over the
year, on
the back of increased sales volumes. The Automotive
segment’s EBIT margin
in 2016 is forecast to remain within the
targeted range of between 8 and 10%.
The BMW Group expects the Motorcycles segment to continue its
upward
trend for the remainder of the current year. The new R
NineT Scrambler and
G 310 R models have given the product
portfolio additional breadth and are
attracting new customer
groups. A “solid” year-on-year increase in sales
volume is
forecast for the full year.
The successful business performance of the Financial Services
segment is
expected to continue. Despite rising equity capital
requirements worldwide, for
the financial year 2016 the BMW Group
forecasts a return on equity (RoE) in
line with the previous year
(2015: 20.2%) and therefore once again above the
target rate of
at least 18%.
Forecasts for the current year are based on the assumption that
worldwide
economic and political environment will not change
significantly.BMW Group combines successful core business with
future-focussed strategic decisions
* * *
The BMW Group – an overview | 3rd quarter 2016 | 3rd quarter 2015 | Change in % | |
Sales volume | ||||
Automotive | Units | 583,499 | 545,062 | 7.1 |
Thereof: BMW | Units | 493,379 | 463,739 | 6.4 |
MINI | Units | 89,179 | 80,488 | 10.8 |
Rolls-Royce | Units | 941 | 835 | 12.7 |
Sales volume Motorcycles | Units | 35,290 | 33,993 | 3.8 |
|
|
|
|
|
Workforce 1 | 126,013 | 121,316 | 3.9 | |
|
|
|
|
|
EBIT margin Automotive Segment | Percent | 8.5 | 9.1 | -0.6 %points |
|
|
|
|
|
Revenues | € million | 23,362 | 22,345 | 4.6 |
Thereof: Automotive | € million | 21,564 | 20,970 | 2.8 |
Motorcycles | € million | 451 | 454 | -0.7 |
Financial Services | € million | 6,403 | 5,621 | 13.9 |
Other Entities | € million | 1 | 1 | - |
Eliminations | € million | -5,057 | -4,701 | -7.6 |
|
|
|
|
|
Profit before financial result (EBIT) | € million | 2,380 | 2,354 | 1.1 |
Thereof: Automotive | € million | 1,837 | 1,912 | -3.9 |
Motorcycles | € million | 32 | 46 | -30.4 |
Financial Services | € million | 576 | 465 | 23.9 |
Other Entities | € million | 6 | 5 | 20.0 |
Eliminations | € million | -71 | -74 | 4.1 |
|
|
|
|
|
Profit before tax (EBT) | € million | 2,575 | 2,263 | 13.8 |
Thereof: Automotive | € million | 2,030 | 1,845 | 10.0 |
Motorcycles | € million | 32 | 45 | -28.9 |
Financial Services | € million | 568 | 462 | 22.9 |
Other Entities | € million | 40 | 5 | - |
Eliminations | € million | -95 | -94 | -1.1 |
|
|
|
|
|
Income taxes | € million | -754 | -684 | -10.2 |
Net profit | € million | 1,821 | 1,579 | 15.3 |
Earnings per share 2 | € | 2.75/2.75 | 2.39/2.39 | 15.1 |
1 Figures exclude dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time working arrangements and low wage earners
2 Earnings per share of common stock/preferred stock
The BMW Group – an overview | Jan. – Sept. 2016 | Jan. – Sept. 2015 | Change in % | |
Sales volume | ||||
Automotive | Units | 1,746,638 | 1,644,810 | 6.2 |
Thereof: BMW | Units | 1,479,936 | 1,395,780 | 6.0 |
MINI | Units | 264,077 | 246,426 | 7.2 |
Rolls-Royce | Units | 2,625 | 2,604 | 0.8 |
Sales volume Motorcycles | Units | 116,044 | 112,411 | 3.2 |
|
|
|
|
|
Workforce 1 | 126,013 | 121,316 | 3.9 | |
|
|
|
|
|
EBIT margin Automotive Segment | Percent | 9.1 | 9.0 | +0.1 %points |
|
|
|
|
|
Revenues | € million | 69,229 | 67,197 | 3.0 |
Thereof: Automotive | € million | 63,250 | 61,513 | 2.8 |
Motorcycles | € million | 1,650 | 1,643 | 0.4 |
Financial Services | € million | 18,940 | 17,833 | 6.2 |
Other Entities | € million | 4 | 4 | - |
Eliminations | € million | -14,615 | -13,796 | -5.9 |
|
|
|
|
|
Profit before financial result (EBIT) | € million | 7,562 | 7,400 | 2.2 |
Thereof: Automotive | € million | 5,778 | 5,525 | 4.6 |
Motorcycles | € million | 224 | 273 | -17.9 |
Financial Services | € million | 1,696 | 1,523 | 11.4 |
Other Entities | € million | 29 | 139 | -79.1 |
Eliminations | € million | -165 | -60 | - |
|
|
|
|
|
Profit before tax (EBT) | € million | 7,741 | 7,114 | 8.8 |
Thereof: Automotive | € million | 6,041 | 5,323 | 13.5 |
Motorcycles | € million | 223 | 271 | -17.7 |
Financial Services | € million | 1,641 | 1,517 | 8.2 |
Other Entities | € million | 84 | 126 | -33.3 |
Eliminations | € million | -248 | -123 | - |
|
|
|
|
|
Income taxes | € million | -2,330 | -2,270 | -2.6 |
Net profit | € million | 5,411 | 4,844 | 11.7 |
Earnings per share 2 | € | 8.19/8.20 | 7.35/7.36 | 11.4/11.4 |
1 Figures exclude dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time working arrangements and low wage earners
2 Earnings per share of common stock/preferred stock