BMW Group clearly focused on mobility of a future

Posted on 08. Nov, 2018 by in BMW Canada

Munich. The BMW Group stays resolutely committed to
following a forward-looking strategy, notwithstanding a current
serious conditions. In line with a Strategy NUMBER ONE
NEXT
, a BMW Group continues to deposit extensively in
tomorrow’s technologies and is progressing a solid course, despite
rarely flighty geopolitical and trade process developments.

 

“Our forward-looking proceed has extensive priority. Particularly in
these flighty times, we are progressing a concentration on a destiny and
holding a decisions that will lead to tomorrow’s success,” said
Harald Krüger, Chairman of a Board of Management
of BMW AG, in Munich on Wednesday. “We mount for trust and
continuity. The BMW Group has some-more than 100 years of knowledge in
traffic with mutation and sensitivity in a fast changing
world. This is because we see serious conditions as an event to
pierce brazen and strengthen a position as marketplace leader. We are
implementing a plan rigorously and investing extensively in the
technologies of a future, notwithstanding today’s volatile
environment,” Krüger emphasised.

 

Research and development losses during a first
9 months of 2018 exceeded final year’s analogous figure by
around € 400 million and totalled € 3,881 million (+11.4%). As
formerly reported, full-year RD losses are approaching to amount
to as many as 7 per cent of Group revenues in 2018 (2017: 6.2%).
This turn of output was reached in a third
quarter
, with an RD ratio of 6.9%. At € 2,889 million,
capital expenditure over a nine-month duration from
Jan to Sep was also adult on a prior year (2017: € 2,817
million). In serve to ramping adult a roll-out of new models, the
concentration is on expanding business in a fields of electric mobility and
unconstrained driving. As a world’s heading provider of premium
mobility, a BMW Group puts a needs and desires of a customers
initial and is stability a ground-breaking work on a four
ACES topics (Autonomous,
Connected, Electrified and Services/Shared).

 

“We sojourn an desirous company, sourroundings ourselves challenging
targets. However, along with a rest of a industry, we are
increasingly confronted with inauspicious outmost factors, a negative
impact of that can't be entirely offset,” commented
Nicolas Peter, Member of a Board of Management of
BMW AG, Finance. “The BMW Group is intensely stretchable and we are
tackling these developments rigorously. We sojourn unconditionally
focused on a issues of essential significance for a future, while at
a same time optimising a inner processes. The BMW Group’s
clever financial opening stays a basement for postulated success,
enabling a association to play a pivotal purpose in moulding a transformation
now holding place in a industry.” Despite a stream very
serious environment, a BMW Group’s Automotive shred generated
free money upsurge of € 2,042 million (2017: € 2,703
million) in a initial 9 months of a stream year.

 

Key critical decisions to safeguard destiny success

 

In new months in particular, a BMW Group has taken countless key
critical decisions to underpin a destiny success on a sustainable
basis. The BMW Group is bolstering a tellurian prolongation network,
focusing keenly on Europe, China and
a USA. In September, a four-millionth
vehicle
was constructed during a Spartanburg
plant in a USA, a Group’s largest prolongation facility
worldwide. The BMW Group is now investing in a Spartanburg
plant on a estimable scale, scheming a plant for future
generations of BMW X models and swelling a internal workforce from a
stream figure of around 10,000 employees to 11,000 employees by 2021.
In serve to a 1,400 BMW X3, X4, X5 and X6 vehicles currently
constructed daily in Spartanburg, from Dec onwards a new
BMW X7 is set to turn a fifth BMW indication to be
made during a South Carolina plant.

 

A few weeks ago, a BMW Group also announced a idea to
comprehensively enhance a business in China. As the
initial unfamiliar car manufacturer to take this step in China, the
BMW Group has concluded with a internal partner, Brilliance, to acquire a
infancy interest in a BMW Brilliance Automotive corner venture. At the
same time, a contractual tenure of a corner try is to be extended
until 2040. Investments of some-more than 3 billion
euros in internal plant structures were announced in tie with this
ground-breaking agreement. These measures strengthen a company’s
position in China, a energetic enlargement market.

 

Rigorous enlargement of electric mobility

 

With a launch of a BMW i3, a BMW Group determined itself early
as a colonize in a domain of electric mobility. Electrification is one
of a pivotal pillars of a Group’s Strategy NUMBER ONE
NEXT
. By 2021, a BMW Group will have five
all-electric models:
a BMW i3, a MINI Electric, a BMW
iX3, a BMW i4 and a BMW iNEXT. By 2025, that series is set to grow
to during slightest twelve models. Including plug-in variety – whose
electrically powered operation will boost significantly in a coming
year – a BMW Group’s electrified product portfolio will then
contain during slightest 25 models.

 

This far-reaching operation is probable interjection to highly stretchable vehicle
architectures
and an equally stretchable tellurian production
system. Going forward, a BMW Group will be able of manufacturing
models with all-electric (BEV), hybrid-electric (PHEV) and
required (ICE) drivetrains on a singular prolongation line. Its
ability to confederate e-mobility in a prolongation network enables the
BMW Group to respond even some-more flexibly to a augmenting direct for
electrified vehicles. The idea for a stream year is to deliver
140,000 electrified vehicles to customers. By a finish of 2019, a BMW
Group expects to have some-more than half a million electrified vehicles on
a roads.

 

The BMW Group is now building a fifth
generation
of a electric drivetrain, in that a interplay
of electric motor, transmission, energy wiring and battery will be
additionally optimised. Integrating a electric motor, transmission
and energy wiring also cuts costs. Another advantage is that the
electric engine does not need singular earths, enabling
a BMW Group to revoke a coherence on their availability. The
fifth era of a electric drivetrain will be commissioned for the
initial time in a BMW iX3 in 2020.

 

At a commencement of a third quarter, a BMW Group sealed a
long-term agreement with a Chinese association Contemporary Amperex
Technology Co. Limited (CATL) to supply battery cells
with a value of 4 billion euros. The endowment of this agreement was a
wilful cause in CATL’s preference to build a world’s many advanced
battery dungeon prolongation trickery in Germany. From 2021 onwards,
cells for a BMW iNEXT – that will be made during a BMW Group
plant in Dingolfing – will be granted by a new CATL plant in
Erfurt. The BMW Group has thereby anchored a whole e-mobility value
sequence in Germany – from battery dungeon prolongation by to the
finished vehicle.

 

One of a prerequisites for expanding e-mobility volumes on this
pioneering scale is a ability to good conduct a highly
sought-after raw materials indispensable to make the
battery cells. In sequence to safeguard confidence of supply, a BMW Group
will in destiny squeeze specific tender materials such as cobalt itself,
and afterwards make them accessible to battery dungeon suppliers – a strategy
that has already proven a value for aluminium and other resources.
In addition, negotiations are being hold with suppliers with a aim
of final long-term agreements for battery tender materials that meet
a BMW Group’s sustainability criteria.

 

Furthermore a BMW Group is substantiating a corner technology
consortium
together with Northvolt (a Swedish battery
manufacturer) and Umicore (a Belgium-based association intent in
building battery materials), thereby holding a serve step to ensure
entrance to a dungeon record so critical for electric mobility. The
partnership will extend to a expansion of a complete,
tolerable value sequence for battery cells in Europe, including
development, prolongation and eventually recycling. The recycling of
battery components will play a pivotal role: given a pointy arise in
direct for battery cells, a consortium’s settled aim is to tighten the
life-cycle loop of tender materials to a biggest probable border with
extensive recycling.

 

Challenging conditions in 2018 financial year

 

In terms of a core business, a BMW Group had
always approaching 2018 to be a serious year. Compared with 2017,
additional upfront output of around one billion euros for the
mobility of a destiny and a high three-digit million euro negative
impact from exchange-rate and raw-materials-price developments had
been factored into approaching gain for a year.

 

As announced on 25 Sep 2018, several additional factors further
limited business opening in a third quarter. Unlike many of
a competitors, a BMW Group implemented a mandate of the
WLTP regulations during an early stage. The industry-wide change to a new
WLTP exam cycle has resulted in poignant supply distortions in
Europe and suddenly heated competition, given that numerous
aspirant models but WLTP acceptance were purebred before 1
September. As a result, within a horizon of a flexible
prolongation and sales plan and given a concentration on gain quality,
a BMW Group motionless to revoke a volume planning. At a same time,
increasing goodwill and guaranty measures resulted in significantly
aloft additions to supplies in a Automotive segment. In addition,
a ongoing general trade conflicts had a outcome of
aggravating a marketplace conditions and feeding consumer uncertainty.
These resources resulted in suddenly serious distortions in
direct and therefore vigour on pricing in several markets.

 

Deliveries of a BMW Group’s 3 premium
car brands during a first 9 months of the
year
edged adult by 1.3% to 1,834,810 units (2017: 1,811,234
units). Group revenues amounted to € 72,460 million
(2017: € 73,324 million; -1.2%). Adjusted for sell rate factors,
a boost was 1.5%. As a outcome of a several inauspicious factors
outset in a third quarter, sum with high levels of upfront
output for investigate and development, profit before
financial outcome
(EBIT) fell to € 7,224 million (2017:
€ 8,137 million; -11.2%). Profit before tax totalled
€ 7,883 million (2017: € 8,741 million; -9.8%) and, notwithstanding the
reduction, was a second-best nine-month figure in a company’s
history. The EBT margin for a Group came in at
10.9% (2017: 11.9%). Group net distinction amounted to €
5,788 million (2017: € 6,337 million; -8.7%).

 

At 592,303 units, third-quarter
deliveries to customers remained during a previous
year’s turn (2017: 590,415 units; +0.3%). Group
revenues
grew by 4.7% to € 24,743 million (2017: € 23,633
million). Profit before financial outcome (EBIT) fell
to € 1,745 million (2017: € 2,384 million; -26.8%). Profit
before tax
(EBT) amounted to € 1,845 million (2017: € 2,503
million; -26.3%). The EBT margin for a Group came
in during 7.5% (2017: 10.6%). Net distinction amounted to €
1,405 million (2017: € 1,846 million; -23.9%).

 

Automotive shred unprotected to flighty business conditions

 

At € 62,629 million, Automotive shred revenues for
a first 9 months were during a prior year’s
turn (2017: € 62,599 million). Due to a factors mentioned above and
a high turn of upfront output for investigate and development,
EBIT amounted to € 4,730 million (2017: € 5,879
million; ‑19.5%). Despite a vast series of inauspicious factors, the
EBIT margin came in during 7.6% (2017: 9.4%).
Profit before tax fell to € 5,346 million
(2017: € 6,562 million; -18.5%).

 

Third-quarter revenues grew by 3.3% to € 21,111
million (2017: € 20,433 million). Due to a above inauspicious factors and
a high turn of upfront output for investigate and development,
EBIT for a three-month duration fell to € 930 million
(2017: € 1,758 million; -47.1%). The Automotive segment’s EBIT
margin came in during 4.4% (2017: 8.6%). Profit
before tax
amounted to € 1,003 million (2017: € 1,886
million; -46.8%).

 

In total, 1,566,216 (2017: 1,537,497 units; +1.9%)
BMW code vehicles were delivered to customers
worldwide during a initial 9 months of a year. With double-digit
enlargement rates, a BMW 5 Series (+14.9%) and a new
BMW X3 (+15.3%) were a categorical enlargement drivers.
Deliveries of a BMW X3 rose by 62.5% in a third
quarter, interjection to full accessibility and stretched prolongation capacity.

 

A sum of 265,935 (2017: 271,394; -2.0%) MINI brand
vehicles were delivered to business during a initial 9 months of
2018. The MINI Countryman available double-digit
enlargement (+24.9%) during this period.

 

Compared to a prior year, deliveries of Rolls-Royce
Motor Cars
rose by 13.5% (2,659 units) in a initial three
buliding of a year. Worldwide direct for all Rolls-Royce models,
including a Black Badge variants of a Dawn, Ghost and Wraith,
stays strong. Preparations are underway for a initial deliveries of
a Rolls-Royce Cullinan to customers, that are scheduled for early
2019. This new all-terrain indication is already enjoying clever customer
demand, with a sequence book filled good into a entrance year.

 

Whereas deliveries of a BMW Group’s 3 automotive brands in
Europe remained probably unvaried during a previous
year’s high turn (816,037 units), a Americas
(336,258 units; +3.0%) and Asia (638,449 units;
+2.8%) regions available slight enlargement for a nine-month period. In
China, a gait of enlargement in a series of deliveries
to business rose significantly in a third entertain (160,047 units;
+11.5%), interjection to a ramp-up of a internal prolongation of a new BMW X3.

 

Motorcycles shred revises indication range

 

BMW Motorrad has revised a 2018 indication operation on a large scale,
adding 9 new models. Production adjustments required during the
ramp-up proviso had a disastrous impact on deliveries during a first
six-month period. In a first 9 months of the
year, a sum of 126,793 BMW motorcycles and maxi-scooters were
delivered to business (2017: 127,818 units; -0.8%).
Revenues totalled € 1,658 million (2017: € 1,827
million; -9.3%). Profit before financial result
decreased to € 208 million (2017: € 282 million; -26.2%), ensuing in
an EBIT margin of 12.5% (2017: 15.4%). Profit
before tax
for a nine-month duration amounted to € 205
million (2017: € 281 million; -27.0%).

 

Third-quarter deliveries to business totalled 39,818
units (2017: 39,429 units; +1.0%). Revenues fell to €
476 million (2017: € 512 million; ‑7.0%). Profit before
financial result
amounted to € 33 million (2017: € 53
million; -37.7%), analogous to an EBIT margin of
6.9% for a entertain (2017: 10.4%). Profit before tax
amounted to € 31 million (2017: € 53 million; ‑41.5%).

 

Financial Services shred stays on course

 

The Financial Services segment continued to perform
good in a duration from January to September 2018. In
total, 1,422,558 (2017: 1,369,263; +3.9%) new
credit financing and lease
contracts were sealed during a nine-month period.
The contract portfolio with sell customers
comprised 5,586,855 contracts during a finish of a stating duration (31
Dec 2017: 5,380,785 contracts; +3.8%). Segment revenues
totalled € 21,148 million (2017: € 20,769 million; +1.8%).
Profit before tax for a nine-month period
amounted to € 1,714 million (2017: € 1,793 million; -4.4%).

 

During a third quarter, 490,347 (2017: 435,026
contracts: +12.7%) new credit financing and lease
contracts
were sealed with sell customers. Segment
revenues
totalled € 7,333 million (2017: € 6,679 million;
+9.8%). Profit before tax amounted to € 548 million
(2017: € 609 million; -10.0%).

 

Increase in workforce size

 

The BMW Group’s workforce comprised 133,475
employees during 30 Sep 2018, 2.7% some-more than during 31 Dec 2017.
Skilled workers and IT specialists in future-oriented areas, such as
digitalisation, unconstrained pushing and electric mobility continue to
be recruited.

 

BMW Group confirms stream opinion for 2018

 

The BMW Group confirms a stream opinion for a financial year
2018. Automotive shred revenues are approaching to be
somewhat next a prior year’s figure. The EBIT
margin
in a Automotive segment is expected
to be during slightest 7%. Group distinction before tax is
approaching to uncover a assuage diminution from a prior year. Possible
certain gain effects from a regulatory capitulation and a closing
of a designed mobility services corner try in 2018 are still not
reflected in a practiced outlook. The factors triggering a outlook
rider on 25 Sep 2018 will also have a poignant outcome on
Group distinction before taxation and a EBIT domain in a Automotive segment
in a fourth quarter. The BMW Group continues to aim slight
increases in deliveries to business in the
Automotive segment in 2018.

 

Forecasts for a stream year are formed on a arrogance that
worldwide mercantile and domestic conditions will not change
significantly. The BMW Group continues to advantage from a strong
brands and appealing product portfolio, while during a same time
carrying to understanding with high levels of upfront output for pivotal new
technologies, heated foe and rising crew costs. The
tellurian domestic and mercantile sourroundings is approaching to sojourn volatile.

 

* * *

 

The BMW Group – an overview

Jan. – Sept.
2018

Jan. – Sept. 2017

Change in %

Deliveries to customers

    

Automotive

units

1,834,810

1,811,234

1.3

thereof: BMW

units

1,566,216

1,537,497

1.9

 MINI

units

265,935

271,394

-2.0

 Rolls-Royce

units

2,659

2,343

13.5

Motorcycles

units

126,793

127,818

-0.8

 

 

 

 

 

Workforce
1                  (compared to 31 December
2017)

133,475

129,932

2.7

 

 

 

 

 

EBIT domain Automotive shred
3

%

7.6

9.4

-1.8 %points

EBIT domain Motorcycles segment
3

%

12.5

15.4

-2.9 %points

EBT domain BMW Group
3

%

10.9

11.9

-1.0 %points

 

 

 

 

 

Revenues
3

€ million

72,460

73,324

-1.2

thereof:
Automotive3

€ million

62,629

62,599

Motorcycles3

€ million

1,658

1,827

-9.3

Financial Services

€ million

21,148

20,769

1.8

Other Entities

€ million

4

4

Eliminations3

€ million

-12,979

-11,875

-9.3

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

7,224

8,137

-11.2

thereof:
Automotive3

€ million

4,730

5,879

-19.5

Motorcycles

€ million

208

282

-26.2

Financial Services

€ million

1,703

1,799

-5.3

Other Entities

€ million

22

0

Eliminations3

€ million

561

177

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

7,883

8,741

-9.8

thereof:
Automotive3

€ million

5,346

6,562

-18.5

Motorcycles

€ million

205

281

-27.0

Financial Services

€ million

1,714

1,793

-4.4

Other Entities

€ million

105

30

Eliminations3

€ million

513

75

 

 

 

 

 

Income taxes
3

€ million

-2,073

-2,404

13.8

Net distinction for a period
3.4

€ million

5,788

6,337

-8.7

Earnings per share
2.3

 €

8.69/8.70

9.55/9.56

-9.0/-9.0

1 Excluding asleep practice contracts, employees in the
work and non-work phases of pre-retirement part-time working
arrangements and low salary earners.

2 Earnings per share of common stock/preferred stock

3 2017 total were practiced according to IFRS 15 – see
note [5] in quarterly report.

4 Value for 2018 (including a detriment from discontinued
operations of € 22 million)

 

 

The BMW Group – an overview

3rd quarter
2018

3rd entertain 2017

Change in %

Deliveries to customers

    

Automotive

units

592,303

590,415

0.3

thereof: BMW

units

506,920

499,467

1.5

 MINI

units

84,505

90,180

-6.3

 Rolls-Royce

units

878

768

14.3

Motorcycles

units

39,818

39,429

1.0

 

 

 

 

 

Workforce
1                  (compared to 31 December
2017)

133,475

129,932

2.7

 

 

 

 

 

EBIT domain Automotive segment
3

%

4.4

8.6

-4.2 %points

EBIT domain Motorcycles segment
3

%

6.9

10.4

-3.5 %points

EBT domain BMW Group
3

%

7.5

10.6

-3.1 %points

 

 

 

 

 

Revenues
3

€ million

24,743

23,633

4.7

thereof:
Automotive3

€ million

21,111

20,433

3.3

Motorcycles3

€ million

476

512

-7.0

Financial Services

€ million

7,333

6,679

9.8

Other Entities

€ million

1

1

Eliminations3

€ million

-4,178

-3,992

-4.7

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

1,745

2,384

-26.8

thereof:
Automotive3

€ million

930

1,758

-47.1

Motorcycles

€ million

33

53

-37.7

Financial Services

€ million

527

607

-13.2

Other Entities

€ million

6

-12

Eliminations3

€ million

249

-22

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

1,845

2,503

-26.3

thereof:
Automotive3

€ million

1,003

1,886

-46.8

Motorcycles

€ million

31

53

-41.5

Financial Services

€ million

548

609

-10.0

Other Entities

€ million

27

11

Eliminations3

€ million

236

-56

 

 

 

 

 

Income taxes
3

€ million

-425

-657

35.3

Net distinction for a period
3.4

€ million

1,405

1,846

-23.9

Earnings per share
2.3

 €

2.09/2.09

2.76/2.76

-24.3/-24.3

1 Excluding asleep practice contracts, employees in the
work and non-work phases of pre-retirement part-time working
arrangements and low salary earners.

2 Earnings per share of common stock/preferred stock
3 2017 total were practiced according to IFRS 15 – see
note [5] in quarterly report.

4 Value for 2018 (including a detriment from discontinued
operations of € 15 million)

 

For questions greatfully contact:

 

Corporate Communications

 

Max-Morten Borgmann, Corporate Communications

Telephone: +49 89 382-24118, Fax: +49 89 382-24418

Max-Morten.Borgmann@bmwgroup.com

 

Mathias Schmidt, Head of Corporate and Culture Communications

Telephone: +49 89 382-24544, Fax: +49 89 382-24418

Mathias.M.Schmidt@bmw.de

 

Internet: www.press.bmwgroup.com

e-mail: presse@bmwgroup.com

 

The BMW Group

 

With a 4 brands BMW, MINI, Rolls-Royce and BMW Motorrad, a BMW
Group is a world’s heading reward manufacturer of automobiles and
motorcycles and also provides reward financial and mobility services.
The BMW Group prolongation network comprises 30 prolongation and assembly
comforts in 14 countries; a association has a tellurian sales network in
some-more than 140 countries.

In 2017, a BMW Group sole over 2,463,500 newcomer vehicles and
some-more than 164,000 motorcycles worldwide. The distinction before taxation in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 Dec 2017, a BMW Group had a
workforce of 129,932 employees.

The success of a BMW Group has always been formed on long-term
meditative and obliged action. The association has therefore established
ecological and amicable sustainability via a value chain,
extensive product shortcoming and a transparent joining to
conserving resources as an constituent partial of a strategy.

 

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupview

Google+: http://googleplus.bmwgroup.com

 

Tags: ,

Comments are closed.