BMW Group creates good start to 2018

Posted on 05. May, 2018 by in BMW Canada

Munich. The BMW Group has started a financial year
2018 with a clever initial quarter. Despite flighty conditions and
unlucky sell rate effects, new best ever sum were
available for sales volume and net profit. Despite high upfront
output for tomorrow’s mobility, a Automotive shred also set a
new record for a outcome from operations (EBIT).

 

“Our attention is now going by a proviso of unprecedented
technological change and contingency master a rarely challenging
conditions. The initial entertain highlights some critical points: we
consider in terms of opportunities and are posterior a well-defined
strategy; we are mixing tomorrow’s mobility with sustainable
profitability – underlined by a fact that we are able of
generating a high pre-tax domain on organisation level, even in volatile
times,” pronounced Harald Krüger, Chairman of a Board of
Management of BMW AG, in Munich on Friday. “The BMW Group was the
world’s many essential vehicle association in 2017 and is stepping adult the
gait again in 2018. In a opening entertain of a new year, we
achieved new best-ever sum for sales volume and net distinction and
implemented some essential vital decisions.” The BMW Group continues
to play an active purpose in transforming a mobility zone with its
future-oriented ACES programme:
Automated, Connected,
Electrified and Services.

 

Despite a vital changes impacting a mobility sector, a one
consistent cause pushing a BMW Group’s vital decisions is the
customer. That is because a BMW Group offers a unique
operation of products, from a BMW i3 by to a Rolls-Royce Phantom,
alongside services trimming from customised financing by to
intelligent mobility services, that minister towards making
customers’ lives easier and some-more convenient. With this user-oriented
strategy, a BMW Group is building into a customer-focused mobility
and tech company, with a thought to have 100 million active customers
by 2025.

 

Since a commencement of a year, a BMW Group has taken vital steps
to exercise poignant tools of a Strategy NUMBER ONE
NEXT
. In February, a BMW Group and a Chinese manufacturer
Great Wall sealed a minute of vigilant to settle a
corner try for a internal prolongation of all-electric
MINI
vehicles in China. This step is a serve clear
joining to a electrified destiny of a MINI code and highlights
a significance of a Chinese marketplace for a BMW Group.

 

One month later, a BMW Group and Daimler AG sealed an agreement to
combine their mobility services business units. The aim
is to combine and strategically enhance a operation of on-demand mobility
services supposing in a areas of CarSharing, Ride-Hailing, Parking,
Charging and Multimodality.

 

On 11 April, a BMW Group non-stop a campus for autonomous
driving
only outward Munich, where together with partners, it
will rise a technologies compulsory for both rarely and fully
programmed driving. Across 23,000 block metres of bureau space, new,
state-of-the-art operative environments now yield space for 1,800
employees. The plan is formulating many jobs and in 2017 alone, the
BMW Group recruited around 1,000 people to rise a technologies of
a future. IT specialists and program developers in a fields of
synthetic intelligence, appurtenance training and information research are
quite sought after.

 

Last week during a Auto China 2018 in Beijing, a BMW Group previewed
a BMW Concept iX3 vehicle, giving an thought of the
initial all-electric BMW X3, that will be manufactured
in China. Production is scheduled to embark in 2020. The vehicle
will be a initial to be versed with a fifth era of electric
drivetrains and will also underline extended battery technology. With a
net ability of some-more than 70 kWh, a car will have a operation of
over 400 kilometres in a WLTP cycle.

 

At a commencement of March, a BMW Group announced that a BMW i
Vision Dynamics will be launched as an all-electric
BMW i4 and made in a Munich
plant. The BMW Group already produces electrified
models during 10 of a plants worldwide. Furthermore, a Oxford plant
will start producing a all-electric MINI in 2019. The BMW i4 is just
one of a 25 electrified models that a BMW Group
intends to move to marketplace by 2025. Half of these models will be entirely electric.

 

The BMW Group is also stepping adult a pace when it
comes to a portfolio of conventionally powered vehicles. Through
2018, a largest product offensive in a story of
a Group will be continued – powered by an additional twenty new and
revised models. The BMW X2 was successfully launched in March, a new
BMW X3 will be made during 3 opposite locations from the
second entertain on and a new era of a BMW X4 is in the
starting blocks. 2018 is clearly a “Year of
X”
for a world’s largest manufacturer of premium
vehicles and a new vehicles are approaching to yield additional sales
volume momentum, quite in a second half of a year.

 

New first-quarter highs for sales volume and net profit

 

First-quarter deliveries of BMW, MINI and
Rolls-Royce code vehicles rose by 3.0% to 604,629 units (2017:
587,237). All 3 vital sales regions contributed to a increase.
Due to banking effects, Group revenues for the
three-month duration fell by 5.1% to € 22,694 million (2017: € 23,926
million). Adjusted for banking effects, revenues were during a similar
turn to a prior year (-0.7%). Profit before financial
outcome
(EBIT) was also shabby by banking factors and
came in during € 2,733 million (2017: € 2,821 million / -3.1%).
Group distinction before taxation (EBT), that is relevant
for a BMW Group financial guidance, amounted to € 3,165 million
(2017: € 3,180 million / -0.5%) and reached a prior year’s high
turn notwithstanding rising costs and upfront output for RD
activities. This opening was partly due to a financial result,
that softened notwithstanding a impact of equipment operative in a opposite
direction. The prior year’s first-quarter financial result
benefited from a certain gratefulness outcome of € 183 million outset in
and with a appearance of new investors in a HERE
mapping service. Improvements in other financial outcome totalling
€ 122 million had also impacted a prior year’s figure. In the
stream year, a financial outcome for a duration from Jan to
Mar includes a gratefulness outcome outset in tie with the
merger of a 50% interest in a DriveNow corner try from Sixt
SE amounting to € 209 million.

 

Another clever giveaway Cashflow approaching for 2018

 

Overall, a EBT margin for a Group came in at
13.9% (2017: 13.3%), a top quarterly figure given 2011.
First-quarter Group net profit amounted to € 2,301
million (2017: € 2,274 million) and was therefore somewhat adult (+1.2%)
on a record figure reported for a prior year.

 

“The initial entertain underlines how we can perform good even under
flighty conditions. So now we continue to concentration on what needs to be
finished in sequence to safeguard 2018 is another record year,“ commented
Nicolas Peter, member of a Board of Management
for BMW AG obliged for Finance. “We sojourn on lane to secure the
tolerable success of a company. The basement for destiny achievements
is a financial strength, that we wish to underline in 2018 with
another giveaway cashflow of some-more than € 3 billion.“

 

Automotive segment: EBIT domain within aim range

 

First-quarter Automotive shred revenues were also
impacted by banking effects and finished a entertain somewhat down
(-3.4%) during € 19,326 million (2017: € 20,001 million). By contrast,
EBIT of € 1,881 million (2017: € 1,877 million)
remained during a prior year’s record turn (+0.2%), notwithstanding a high
turn of upfront output for RD. The EBIT
margin
softened accordingly to 9.7% (2017: 9.4%) and was thus
during a top finish of a aim operation of 8 to 10%. At € 2,281 million
(2017: € 2,285 million), profit before tax was also
during a likewise high turn to a prior year (-0.2%).

 

BMW Group vehicles with electrified drivetrains were
quite popular, with sales of a BMW i3 and i8 models, together
with BMW iPerformance and MINI Electric plug-in hybrids, adult by 38% to
only underneath 27,000 units. “We are therefore good on march to
delivering some-more than 140,000 electrified vehicles in a current
year,” Harald Krüger stated. Electrified vehicles
accounted for some-more than 4 percent of sum BMW Group vehicle
deliveries to business in a initial entertain (Q1 2017: 3.3%). With its
3 automotive reward brands, a BMW Group is assured it will
sojourn a world’s heading manufacturer of reward vehicles in 2018.

 

Overall, a BMW code delivered 517,447 units
(2017: 503,445 units) to customers, a best outcome to date for a
initial entertain (+2.8%). Sales-volume expansion was driven generally by
a new era of a BMW 5 Series and a BMW X1. These vehicles
were introduced in open 2017 and both have available double-digit growth.

 

The MINI code also achieved good during a first
quarter, recording a best sales volume outcome to date for a first
quarter, with 86,375 units delivered to business (2017: 83,059 units;
+4,0%) The marketplace launch of a updated MINI and a MINI Convertible
in Mar is approaching to emanate flourishing movement over a residue of
a year.

 

First-quarter sales of Rolls-Royce Motor Cars rose
by 10.1% year-on-year to 807 units (2017: 733 units). Customer demand
for Rolls-Royce models stays clever worldwide with a difference of
a Middle East, where a marketplace stays volatile. The new Phantom,
a brand’s flagship, has been on sale given January, with order
intake set to sojourn high by to a year-end. Preparations are
good underway for a marketplace launch of a Rolls-Royce Cullinan.

 

The BMW Group stays committed to a plan of achieving a
well-balanced placement of sales worldwide, regulating a highly
stretchable production, sales and selling structures to even out
vacillating direct between sole regions. All 3 of the
Group’s major sales regions contributed to volume
expansion during a initial quarter, driven in sole by strong
performances on a Chinese mainland and in a USA.

 

Sales sum for Europe edged adult by 1.0% to 270,725
units (2017: 267,996 units). First-quarter deliveries to business in
France were somewhat adult on a prior year (+3.1%). Business in the
UK, however, engaged (-2.7%) in a arise of a continuing
doubt per a swell of Brexit negotiations.

 

Sales of BMW, MINI and Rolls-Royce code vehicles in
Asia in a initial entertain 2018 grew by a plain 6.3%
to 212,693 units (2017: 200,140 units). China again accounted for the
lion’s share of a increase, with deliveries of a Group’s three
automotive brands adult 7.1% compared to one year earlier.

 

In a Americas region, a BMW Group recorded
volume expansion of 4.0% to 106,348 units (2017: 102,238 units). The
figure includes 84,630 units sole in a USA, also somewhat up
year-on-year (+3.0%).

 

Motorcycles shred sales volume during prior year’s level

 

BMW Motorrad sales volume in a initial entertain was
during a same high turn as a prior year. Worldwide deliveries to
business edged adult 0.6% to 35,858 units (2017: 35,636 units), setting
a new first-quarter sales volume record for a seventh year in
succession. At a same time, shred opening was hold down by the
impact of a stream indication change and by banking effects.
Revenues fell by 15.5% to € 524 million (2017:
€ 620 million). EBIT was also adversely shabby by
a same factors and finished during € 77 million (2017: € 125 million;
-38.4%). Pre-tax distinction for a three-month duration amounted to € 78
million (2017: € 125 million; -37.6%). The first-quarter EBIT
margin
for a Motorcycles shred came in during 14.7% (2017:
20.2%). In a light of somewhat slower prolongation ramp-up of new
models, sell sales for 2018 are now approaching to grow slightly.

 

Financial Services shred stays on course

 

The contract portfolio under government within the
Financial Services segment grew by 1.0% during the
three-month duration underneath news and stood during 5,434,664 contracts during 31
Mar 2018 (31 Dec 2017: 5,380,785 contracts). During a first
quarter, 451,908 (2017: 465,634) new leasing and credit
financing contracts
were sealed with sell customers
(-2.9%). Segment revenues and gain were shabby by currency
factors: First-quarter revenues fell by 5.3% to
€ 6,674 million (2017: € 7,046 million) and profit before
tax
by 5.7% to € 561 million (2017: € 595 million). The BMW
Group continues to record adequate levels of sustenance with honour to
residual value and credit risk exposures in a leasing and financing
lines of business.

 

Increase in workforce size

 

The BMW Group’s workforce comprised 131,181 employees during a finish of
a initial quarter, 1.0% 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 reaffirms targets for a financial year 2018

 

The BMW Group is assured of achieving a projected targets for the
stream financial year – mostly interjection to a clever brands, its
appealing product portfolio and a expectancy that international
vehicle markets will continue their generally ceiling trend. These
enlightened factors are equivalent by intensely high levels of upfront
output for new technologies, extreme foe and rising
crew expenses. The tellurian domestic and mercantile sourroundings is
approaching to sojourn volatile.

 

The BMW Group reaffirms a targets for a full year. “We are
targeting new record sum in a Automotive
segment
for sales volume and
revenues in 2018,” settled Harald
Krüger
. “Group distinction before taxation is expected
to be during slightest during a prior financial year’s level.” The BMW Group
continues to foresee an EBIT domain in a target
operation of 8 to 10% for a Automotive segment.

 

In tie with a designed bundling of mobility services, a BMW
Group has announced that – if authorized by a foe authorities
in a stream year – a substructure of a corner try will have a
one-off gratefulness and gain outcome and will outcome in an adjustment
to a outlook. Under these circumstances, a Group profit
before taxation
for 2018 would be somewhat aloft than one year
earlier. The outcome described above has no impact on a EBIT margin
of a Automotive segment.

 

Forecasts for a stream year are formed on a arrogance that
worldwide mercantile and domestic conditions will not change significantly.

* * *

The BMW Group – an overview

1st quarter
 2018

1st quarter
 2017

Change in %

Deliveries to customers

    

Automotive

units

604,629

587,237

3.0

Thereof:  BMW

units

517,447

503,445

2.8

 MINI

units

86,375

83,059

4.0

 Rolls-Royce

units

807

733

10.1

Motorcycles

units

35,858

35,636

0.6

 

 

 

 

 

Workforce
1                            (compared to
31.12.2017)

131,181

129,932

1.0

 

 

 

 

 

Automotive
shred EBIT margin3

%

9.7

9.4

+0.3 %Points

Motorcycles
shred EBIT margin3

%

14.7

20.2

-5.5 % Points

EBT domain BMW Group
3

%

13.9

13.3

+0.6 %Points

 

 

 

 

 

Revenues
3

€ million

22,694

23,926

-5.1

Thereof:
Automotive3

€ million

19,326

20,001

-3.4

Motorcycles3

€ million

524

620

-15.5

Financial Services

€ million

6,674

7,046

-5.3

Other Entities

€ million

2

2

Eliminations3

€ million

-3,832

-3,743

-2.4

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

2,733

2,821

-3.1

Thereof:
Automotive3

€ million

1,881

1,877

0.2

Motorcycles3

€ million

77

125

-38.4

Financial Services

€ million

569

604

-5.8

Other Entities

€ million

9

4

Eliminations3

€ million

197

211

-6.6

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

3,165

3,180

-0.5

Thereof:
Automotive3

€ million

2,281

2,285

-0.2

Motorcycles3

€ million

78

125

-37.6

Financial Services

€ million

561

595

-5.7

Other Entities

€ million

70

-4

Eliminations3

€ million

175

179

-2.2

 

 

 

 

 

Income taxes
3

€ million

-864

-906

4.6

Net profit
3

€ million

2,301

2,274

1.2

Earnings per share
2,3

 €

3.47/3.47

3.45/3.45

0.6/0.6

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

 

For questions greatfully contact:

 

Corporate Communications

 

Max-Morten Borgmann, Business and Finance Communications

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

Max-Morten.Borgmann@bmwgroup.com

 

Glenn Schmidt, Head of Business and Finance Communications

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

glenn.schmidt@bmwgroup.com

 

Internet: www.press.bmwgroup.com

e-mail: presse@bmw.de

 

 

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

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Twitter: http://twitter.com/BMWGroup

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

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