BMW Group continues its course of profitable growth

  • Second quarter: sales volume and earnings at record levels
  • Sustainable profitability: 25th consecutive quarter to achieve
    automotive segment EBIT margin within target range of between 8 and
    10% or higher
  • BMW Group reaffirms outlook for full year 2016
  • Strong demand for BMW i and BMW iPerformance models
  • Cooperation with Intel and Mobileye underlines drive to lead the
    field of automated driving

 

 


Munich.

The BMW Group continued its course of profitable growth during
the second quarter of 2016, whilst also taking important decisions
for the future in line with its Strategy
Number ONE NEXT. As the world’s leading
provider of premium products and services for individual mobility,
the BMW Group recorded its best ever quarterly sales volume and net
profit figures between April and June. The partnership with Intel
and Mobileye underlines the BMW Group’s ambition to play a leading
role in developing safe and reliable automated driving.

 

“We sold more vehicles in the second quarter than ever before
and achieved record earnings. We are growing profitably while
simultaneously implementing our strategy step by step,” stated
Harald Krüger, Chairman of the Board of Management of BMW
AG
, on Tuesday. “Sustainable profitability on this scale
provides us with the financial headroom we need to pursue our work
on future technologies such as electric mobility and automated
driving. For me, there is no “either/or” between the present and the
future. The strength of today’s core business is the cornerstone for
tomorrow’s success.”

 


Second-quarter sales volume

of the BMW Group’s three premium brands (BMW,
MINI and Rolls-Royce) climbed by 5.7% to 605,534 units (2015:
573,079 units), thereby marking a new high for a quarter.
Once again, the BMW Group was the world’s leading manufacturer of
premium vehicles.


Second-quarter revenues

rose by 4.5% to € 25,014 million (2015: € 23,935 million). At €
2,725 million, profit before financial result
(EBIT) was 7.9% higher than one year earlier (2015: € 2,525
million). Group profit before tax (EBT) increased
by 8.4% to a new high level of € 2,798 million (2015:
€ 2,582 million). Group net profit rose by 11.4% to
€ 1,949 million (2015: € 1,749 million), also marking a new record
for a second quarter.

 


BMW Group achieves best ever six-month figures in first half
of 2016

 


Six-month sales

recorded by the Automotive segment rose by 5.8% to reach a new
high of 1,163,139 units (2015: 1,099,748 units). The strategy of
balancing sales worldwide continued to pay off, allowing
fluctuations in some markets to be offset.

 


Six-month revenues

edged up by 2.3% to € 45,867 million (2015: € 44,852 million).
Profit before financial result (EBIT) rose by
2.7% to € 5,182 million (2015: € 5,046 million). Group
profit before tax
(EBT) increased by 6.5% to a new
all-time high level of € 5,166 million (2015: € 4,851 million).
Group net profit rose by 10.0% to € 3,590 million
(2015: € 3,265 million), also marking a new record for the first six
months of a year.

 


Automotive segment: EBIT margin at upper end of target range


 


Second-quarter revenues of the Automotive segment

grew by 5.6% to € 22,872 million (2015: € 21,650 million).
EBIT rose sharply to € 2,178 million (2015: € 1,819
million; +19.7%). The EBIT margin in the Automotive
segment came in at 9.5% (2015: 8.4%), the 25th consecutive quarter
within the target range of between 8 and 10% or higher.
Segment profit before tax rose by 23.5% from
€ 1,844 million to € 2,277 million.

 

“A look at the EBIT margin for the past 25 quarters shows that
we do not only focus on short-term results. More importantly, we
concentrate on what we consider to be our primary responsibility:
delivering consistently good results, even in volatile times, in
order that we can finance and shape the company’s future based on
our own underlying strength,” pointed out Friedrich
Eichiner, member of the Board of Management responsible for Finance
.

 

Six-month revenues of the Automotive segment
grew by 2.8% to € 41,686 million (2015: € 40,543 million). Segment
EBIT increased to € 3,941 million (2015: € 3,613
million; +9.1%), resulting in an EBIT margin of
9.5% (2015: 8.9%). Profit before tax improved
sharply to € 4,011 million (2015: € 3,478 million; +15.3%).

 

Sales of BMW brand vehicles in the second
quarter
rose by 5.7% to a new high of 507,814 units (2015:
480,465 units). The equivalent six-month figure of
986,557 units (2015: 932,041 units; +5.8%) also broke all existing
records. Tailwind came from various directions, including sales of the
BMW Group’s flagship model, the BMW 7 Series, and the BMW X models.
Six-month deliveries of the BMW 7 Series were 31.7%
up on the previous year. Additional momentum is expected to come from
the plug-in hybrid version of the 740e and from the top model BMW
M760Li xDrive. Sales of the BMW X1 during the
six-month period jumped by 61.7% to 94,156 units, while
BMW 2 Series deliveries to customers were up by 52.4%
to 97,949 units. The BMW X3 recorded a 16.6%
increase, with sales volume rising to 77,486 units.

 

Demand for electrified BMW i and
iPerformance models equipped with a plug-in hybrid
drive system grew particularly strongly in Europe. In June, electric
vehicles accounted for four per cent of all BMW vehicles sold in
Western Europe. The percentage is significantly higher in markets
promoting electric mobility in the form of financial incentives and
infrastructural measures. In the Netherlands, 14.9% of all BMW
vehicles sold in June were BMW i or BMW iPerformance models. The
equivalent proportion in Scandinavia was 13.2%.

 

The BMW Group currently offers seven electrified models including
plug-in hybrids, such as the new BMW 740e or the
recently launched BMW 330e and BMW 225xe
Active Tourer
, and the fully electric BMW
i3
. Thanks to the expanded range of electrified models, sales
of this type of vehicle in the first six months of the year were just
under 87% higher than the same period last year: a total of 23,675
have been delivered to customers worldwide. Furthermore, to the end of
July 2016, over 7,000 orders had been received for the additional BMW
i3 model with significantly extended battery range, which only
celebrated its market launch in July. This is more than three times
the figure of orders received for the first generation BMW i3 at the
equivalent launch period.

 


MINI

also recorded a new high for deliveries to customers in the
second quarter. Worldwide sales were 5.4% higher
at 96,587 units (2015: 91,626 units), with momentum coming in
particular from the new MINI Clubman and the MINI Convertible.
Six-month sales at MINI climbed by 5.4% to
174,898 units.

 


Rolls-Royce Motor Cars

achieved a new sales volume record of 1,133 units in the
second quarter (2015: 988 units; +14.7%). This
performance was helped by a strong contribution made by the new
Rolls-Royce Dawn, of which 514 units had been sold since its market
launch in March. The addition of this latest member to the family
provided the expected boost to the brand’s sales figures, which had
been affected in the early months of the year by the production
changeover. Worldwide sales for the six-month period totalled 1,684
units (2015: 1,769 units; -4.8%).

 

The upward trend for the BMW Group continued in
Europe, with six-month sales up 11.2% year-on-year to
543,270 units. Double-digit growth was recorded in a number of
markets, including Great Britain (+10.7%; 122,720 units), France
(+12.0%; 43,314 units) and Italy (+15.2%; 41,455 units).

 

Deliveries of BMW Group vehicles in Asia during the
six-month period rose by 7.3% to 361,568 units, including 247,817
units sold on the Chinese mainland (+7.4%) and 36,598 units in Japan (+7.8%).

 

Sales volume in the
Americas
region during the six-month period fell by 8.0% to 223,098
units, including 179,102 units (-10.2%) sold in the USA.

 


Motorcycles segment exceeds sales volume of 80,000 units for
the first time in the first half of a year – sales guidance raised

 

The Motorcycles segment continues to perform well. At 46,966
units, second-quarter sales of BMW motorcycles and
maxi-scooters worldwide remained at the previous year’s high level
(47,048 units; -0.2%). Segment revenues totalled
€ 617 million in the second quarter, similar to one year earlier
(2015: € 622 million; – 0.8%). Earnings, however, were down on the
previous year, due to starting a number of projects which support
the implementation of the Motorcycles segment’s new strategy.
EBIT amounted to € 98 million (2015: € 112 million;
-12.5%), while profit before tax finished at € 97
million (2015: € 112 million; -13.4%).

 

For the first time in the first half of a year, more than 80,000
motorcycles and maxi-scooters were delivered to customers during the
first half of 2016. Sales volume during the
period from January to June increased by 3.0% to 80,754 units (2015:
78,418 units) – the fourth successive record figure for the first
half of a year. At € 1,199 million, segment
revenues
were at a similar level to the previous year
(2015: € 1,189 million: +0.8%). EBIT amounted to
€ 192 million (2015: € 227 million; -15.4%), while profit
before tax
finished at € 191 million (2015: € 226
million; -15.5%). The Motorcycles segment’s sales volume performance
is expected to improve further during the second half of the
year
thanks to its attractive and young model range. For
the full year, a solid (previously: slight) increase in retail sales
is expected.

 


Financial Services segment continues to perform well


 

The Financial Services segment put in another convincing
performance during the reporting period, again setting new records.
In total, 460,718 (2015: 416,961) new contracts
were signed in the second quarter in conjunction with financing and
leasing business, 10.5% more than in the previous year. The number
of lease and financing contracts in place with
retail customers and dealers increased to 4,890,279 contracts at the
end of the reporting period (30 June 2015: 4,500,056 contracts;
8.7%). Segment revenues rose by 5.7% to € 6,505
million (2015: € 6,154 million). Profit before tax
edged up to € 503 million (2015: € 496 million; +1.4%).

 

In total, 874,090 (2015: 801,526) new contracts
were signed during the first half of the year
relating to financing and leasing business, 9.1% more than in the
corresponding period of the previous year. Segment
revenues
were 2.7% higher at € 12,537 million (2015:
€ 12,212 million). Profit before tax grew
marginally to € 1,073 million (2015: € 1,055 million; +1.7%).


 


Employee numbers slightly up


 

The size of the BMW Group workforce at 30 June
2016 increased by 3.4% year-on-year. The BMW Group employed a total
workforce of 123,597 people worldwide at the end of the reporting
period (2015: 119,489 people). The BMW Group continues to recruit
engineers and skilled workers, including software and IT experts, in
order to keep pace with the constantly growing demand for BMW Group
vehicles and to forge ahead with creative innovations, developing
the technologies of tomorrow.

 

 


BMW Group on track to achieve guidance for full year 2016

 

The BMW Group remains confident of being able to 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 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 as a whole on the
back of higher sales volumes. The EBIT margin of
the Automotive segment 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 (previously: slight) 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’s level (2015: 20.2%), once again above
the target rate of at least 18%.

 

Forecasts for the current year are based on the assumption that
worldwide economic conditions will not change significantly.

 

* * *

 

 

The BMW Group – an overview

2nd quarter

2016

2nd quarter 2015

Change in %

Sales volume

    

Automotive

Units

605,534

573,079

5.7

Thereof:   BMW

Units

507,814

480,465

5.7

MINI

Units

96,587

91,626

5.4

Rolls-Royce

Units

1,133

988

14.7

Sales volume Motorcycles

Units

46,966

47,048

-0.2

 

 

 

 

 

Workforce 1

 

123,597

119,489

3.4

 

 

 

 

 

EBIT margin Automotive Segment

Percent

9.5

8.4

+1.1 %points

 

 

 

 

 

Revenues


million

25,014

23,935

4.5

Thereof:     Automotive

€ million

22,872

21,650

5.6

    Motorcycles


million

617

622

-0.8

   Financial Services

€ million

6,505

6,154

5.7

   Other Entities


million

2

1

100.0

   Eliminations


million

-4,982

-4,492

-10,9

 

 

 

 

 

Profit before financial result
(EBIT)

€ million

2,725

2,525

7.9

Thereof:   Automotive

€ million

2,178

1,819

19.7

   Motorcycles


million

98

112

-12.5

   Financial Services

€ million

529

503

5.2

   Other Entities


million

12

94

-87.2

   Eliminations


million

-92

-3

 

 

 

 

 

Profit before tax (EBT)

€ million

2,798

2,582

8.4

Thereof:   Automotive

€ million

2,277

1,844

23.5

   Motorcycles


million

97

112

-13.4

   Financial Services

€ million

503

496

1.4

   Other Entities


million

46

144

-68.1

   Eliminations


million

-125

-14

 

 

 

 

 

Income taxes


million

-849

-833

-1.9

Net profit


million

1,949

1,749

11.4

Earnings per share 2

2.95/2.96

2.66/2.67

10.9/10.9

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

1st half year 2016

1st half year 2015

Change in %

Sales volume

    

Automotive

Units

1,163,139

1,099,748

5.8

Thereof:   BMW

Units

986,557

932,041

5.8

MINI

Units

174,898

165,938

5.4

Rolls-Royce

Units

1,684

1,769

-4.8

Sales volume Motorcycles

Units

80,754

78,418

3.0

 

 

 

 

 

Workforce 1

 

123,597

119,489

3.4

 

 

 

 

 

EBIT margin Automotive Segment

Percent

9.5

8.9

+0.6 %points

 

 

 

 

 

Revenues


million

45,867

44,852

2.3

Thereof:     Automotive

€ million

41,686

40,543

2.8

    Motorcycles


million

1,199

1,189

0.8

   Financial Services

€ million

12,537

12,212

2.7

   Other Entities


million

3

3

   Eliminations


million

-9,558

-9,095

-5,1

 

 

 

 

 

Profit before financial result
(EBIT)

€ million

5,182

5,046

2.7

Thereof:   Automotive

€ million

3,941

3,613

9.1

   Motorcycles


million

192

227

-15.4

   Financial Services

€ million

1,120

1,058

5.9

   Other Entities


million

23

134

-82.8

   Eliminations


million

-94

14

 

 

 

 

 

Profit before tax (EBT)

€ million

5,166

4,851

6.5

Thereof:   Automotive

€ million

4,011

3,478

15.3

   Motorcycles


million

191

226

-15.5

   Financial Services

€ million

1,073

1,055

1.7

   Other Entities


million

44

121

-63.6

   Eliminations


million

-153

-29

 

 

 

 

 

Income taxes


million

-1,576

-1,586

0.6

Net profit


million

3,590

3,265

10.0

Earnings per share 2

5.44/5.45

4.96/4.97

9.7/9.7

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

 

 

 

For questions please contact:

 

Corporate Communications

 

Max-Morten Borgmann, Business and Finance Communications

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


Max-Morten.Borgmann@bmwgroup.com

 

Nikolai Glies, Head of Business and Finance Communications

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


Nikolai.Glies@bmwgroup.com

 

Internet:
www.press.bmwgroup.com

e-mail:
presse@bmw.de

 

 

 

The BMW Group

 

With its three brands BMW, MINI and Rolls-Royce, the BMW Group is the
world’s leading premium manufacturer of automobiles and motorcycles
and also provides premium financial and mobility services. As a global
company, the BMW Group operates 31 production and assembly facilities
in 14 countries and has a global sales network in more than 140 countries.

 

In 2015, the BMW Group sold approximately 2.247 million cars and
nearly 137,000 motorcycles worldwide. The profit before tax for the
financial year 2015 was approximately € 9.22 billion on revenues
amounting to € 92.18 billion. As of 31 December 2015, the BMW Group
had a workforce of 122,244 employees.

 

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

 


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