BMW Group stays on march and reaffirms opinion for 2018

Posted on 02. Aug, 2018 by in BMW Canada

Munich. The BMW Group invested roughly in the
mobility of a destiny during a initial half of a year, while during the
same time intentionally stability on a march of essential growth.
Rigorous doing of a Group’s Strategy NUMBER ONE
NEXT
is personification a pivotal role, as a association shapes the
mutation of a automotive sector. Driving this routine forward,
a BMW Group always stays focused on a needs and desires of its
business and is stability a ground-breaking work on a four
ACES topics (Autonomous,
Connected, Electrified and
Services/Shared). The BMW Group has also set a
wilful march for a destiny in China, a company’s largest expansion market.

 

“We continue to concentration on following a possess trail and sojourn intentionally on
course. We are consistently scheming ourselves to accommodate a final of
tomorrow. This proceed enables us to sojourn a arguable partner – all
a some-more critical during severe times,” settled Harald
Krüger
, Chairman of a Board of Management of BMW AG, in
Munich on Thursday. “The BMW Group has some-more than 100 years of
knowledge in traffic with sensitivity in a changing world. Our vision
stays clearly on long-term prospects. It is essential that we remain
focused on a pivotal issues of profitability, expansion and creation to
safeguard a rival corner going forward.”

 

As planned, this year a BMW Group has significantly increasing its
upfront output on destiny mobility. Research and
development
losses over a initial 6 months of 2018 were
some-more than € 300 million aloft than in a analogous duration one
year progressing and totalled € 2,610 million (+13.6%). As previously
reported, full-year RD losses are approaching to strech adult to seven
per cent of Group revenues in a stream year (2017: 6.2%).

 

In serve to ramping adult prolongation to expostulate a new model
offensive, a BMW Group is focusing on expanding a activities in
a fields of electric mobility and unconstrained driving. In both cases,
a BMW iNEXT will offer as a technological spearhead
that sets new standards. It will be presented to a open as a
prophesy car during a second half of 2018 and will be built during the
Dingolfing plant from 2021 onwards. This underlines a significance
of Germany as a pivotal plcae for destiny technologies and a centre of
cunning for electric mobility.

 

Commitment in China taken to a new level

 

Over a past few weeks, a BMW Group has also taken countless steps
to enhance a footprint and a scale of a blurb success in
China. The BMW Group and Brilliance Automotive Group
have concluded to serve enhance their corner try BMW Brilliance
Automotive (BBA) and, from 2020 onwards, to trade a all-electric
BMW iX3 (which will be done by BBA) to
markets outward of China.

 

As formerly stated, a BMW Group welcomes China’s joining to a
serve opening of a markets and initiating reforms by lifting the
unfamiliar shareholding border for automotive corner ventures for passenger
vehicles as from 2022. However, it stays a BMW Group’s process not
to criticism publicly on ongoing discussions with partners.

 

In serve to expanding a BBA corner venture, a BMW Group has
sealed an agreement with a Chinese manufacturer Great Wall Motor to
furnish electric MINI vehicles in China by a
mutual 50:50 corner venture. As good as electric MINI vehicles, the
“Spotlight Automotive Limited” corner try will also
furnish electric vehicles for Great Wall Motor. The investiture of
a new association is theme to capitulation by a applicable Chinese
authorities and a finalisation of business registration procedures.

 

The BMW Group is also investing in Europe, adding a
new plant in Hungary to a existent prolongation network and thereby
progressing a good change in terms of tellurian prolongation between
Asia, America and Europe. “The preference to erect this new
plant highlights a BMW Group’s prospects for growth,” said
Krüger. “This new plcae will also produce
vehicles powered by explosion engines and electrified drivetrains on
a same prolongation line.”

 

The BMW Group is building worldwide into a mobility tech company
and evenly expanding a imagination and capacities in a field
of software development. To this end, during the
second entertain a BMW Group sealed an agreement with CRITICAL
Software to form a corner try called Critical TechWorks, theme to
hearing and capitulation by a applicable antitrust authorities. The
BMW Group’s interest in Critical TechWorks secures entrance to a know-how
and skills of a rarely successful European program development
company, whose locations in Lisbon and Porto are witnessing dynamic
expansion in this sector. Meanwhile, a BMW Group continues to increase
a series of people intent in IT and program expansion in Germany
and during a many other comforts around a world.

 

BMW Group underlines a heading purpose in electric mobility

 

The BMW Group has pioneered electric mobility and followed this path
intentionally ever given a marketplace launch of a BMW i3 roughly five
years ago. Following a launch of a new BMW i8 Roadster, a BMW
Group’s product operation now includes 10 electrified models. The number
of electrified BMW and MINI vehicles delivered given a commencement of
a year has increasing to 60,660 units (+42.5%), underlining a BMW
Group’s position among a world’s heading providers of premium
e-mobility. “We are delivering on a pledge of some-more than
140,000 electrified vehicles this year,” said
Krüger. Furthermore, prolongation of the
battery-electric MINI will start during a Oxford plant during a finish of
2019, followed in 2020 by a all-electric BMW iX3, that will be
done in Shenyang, China. Together with a BMW iNEXT and the
BMW i4, a BMW Group is set to have 25 electrified models
on a roads by 2025, half of that will be all-electric.

 

BMW Group on march after initial half of year

 

A successful and sustainably essential core business continues to
form a fortitude of a BMW Group. “We always see challenging
conditions as an event to precedence a rival corner to the
best advantage. A transparent concentration and high coherence are a response to
an sourroundings characterised by energetic change,” commented
Nicolas Peter, Member of a Board of Management of
BMW AG, Finance. “We are endeavouring to safeguard that a BMW
Group stays essential on a tolerable basis. The company’s
financial strength and a position as a world’s many profitable
manufacturer capacitate us to grasp a aims. These fundamental
qualities pledge a ability to figure tomorrow’s mobility with our
possess resources – even in times of volatility.” The Automotive
shred generated giveaway money upsurge of € 1,944 million during a first
6 months of a year (2017: € 2,035 million; -4.5%) and continues to
aim a figure in additional of 3 billion euros for a full year.

 

Deliveries of BMW, MINI and Rolls-Royce reward code vehicles
increasing by 1.8% to 1,242,507 units (2017: 1,220,819 units) during
a first half of a year. Group
revenues
amounted to € 47,717 million (2017: € 49,691
million; ‑4.0%). Adjusted for banking effects, revenues were during a
identical turn to a prior year (-0.3%). In perspective of the
significantly aloft upfront shortcoming incurred for investigate and
expansion activities, profit before financial
result
(EBIT) amounted to € 5,479 million (2017: € 5,753
million; -4.8%). The financial outcome for a six-month period
benefited from a grant of € 444 million (2017: € 342 million)
done by a BBA corner try in China. Profit before
tax
(EBT) amounted to € 6,038 million (2017: € 6,238 million;
-3.2%). The EBT margin for a Group came in during 12.7%
(2017: 12.6%). Group net distinction amounted to
€ 4,383 million (2017: € 4,491 million; -2.4%).

 

Second-quarter deliveries edged adult by 0.7% to 637,878
units (2017: 633,582 units). Group revenues for the
three-month duration totalled € 25,023 million (2017: € 25,765 million;
-2.9%, banking practiced +0.1%). Profit before financial
outcome
(EBIT) finished during € 2,746 million (2017: € 2,932
million; ‑6.3%) due to a poignant boost in upfront RD
expenditure. Profit before tax (EBT) amounted to
€ 2,873 million (2017: € 3,058 million; -6.0%). The EBT
margin
came in during 11.5% (2017: 11.9%), above a aim of 10
percent set for a Group. Group net distinction amounted
to € 2,082 million (2017: € 2,217 million; -6.1%).

 

Automotive segment: EBIT domain within aim range

 

Six-month revenues for a Automotive segment
totalled € 41,518 million (2017: € 42,166 million; -1.5%;
banking practiced +2.4%). Segment EBIT amounted to
€ 3,800 million (2017: € 4,121 million; -7.8%), ensuing in an
EBIT margin of 9.2% (2017: 9.8%). Profit
before tax
for a six-month duration amounted to € 4,343
million (2017: € 4,676 million; -7.1%).

 

At € 22,192 million, second-quarter Au
tomotive shred revenues were during a likewise high
turn to a prior year (€ 22,165 million; +0.1%, banking adjusted
+3.2%). In serve to intensely aloft RD expenses,
second-quarter EBIT was also negatively impacted on a
low- to mid-three-digit million-euro scale by exchange-rate effects
and aloft tender materials prices. To a vast border additional costs
were equivalent by potency improvements. Overall, EBIT
for a three-month duration amounted to € 1,919 million (2017: € 2,244
million; ‑14.5%), ensuing in an EBIT
margin for a Automotive shred of 8.6% (2017:
10.1%), that lies within a unvaried aim operation of between 8 and
10%. Profit before tax reached € 2,062 million (2017:
€ 2,391 million; ‑13.8%).

 

The glorious second-quarter sales opening means that a BMW
Group has now available expansion in 35 uninterrupted quarters. The ramp-up
of prolongation of a BMW X3 in China and South Africa
will capacitate a BMW Group to accommodate a high marketplace direct for its
desired X models. This increasing accessibility means a company
expects sales expansion to accelerate during a second half of a year.

 

The acclimatisation of BMW models to a new WLTP test
procession is move according to devise and has been largely
completed. In addition, around 190 models now already comply
with a Euro 6d-TEMP emissions standard, that does not become
imperative for all new registrations until 1 Sep 2019. The range
of these models extends from required petrol and diesel vehicles
to BMW i and BMW iPerformance as good as BMW M GmbH.

 

A sum of 1,059,296 BMW code vehicles were
delivered to business worldwide (2017: 1,038,030 units; +2.0%) during
a initial half of a year. The BMW 1 Series (98,396
units; +7.2%), a BMW X1 (152,866 units; +11.8%) and
a BMW 5 Series (191,185 units; +14.9%) were among
a countless models that have contributed to sales volume expansion since
a commencement of a year. The BMW 5 Series Sedan took initial place in
a business sedan shred over a six-month period. Improved
accessibility resulted in a 24.6% burst in monthly deliveries of the
BMW X3 to 17,584 units in June.

 

At 181,430 units (+0.1%) worldwide deliveries of
MINI code vehicles during a initial 6 months of
a year matched a high turn available one year earlier. The MINI
Countryman was quite popular, with 48,692 units (+39.8%)
delivered to business during a initial half of a year.

 

Six-month deliveries of Rolls-Royce code vehicles
rose by 13.1% (1,781 units) year-on-year. Rolls-Royce models sojourn in
high direct in many regions, including a certain ceiling trend in
China. Market conditions in a Middle East, however, sojourn volatile.
In serve to glorious sales sum for a new Phantom, direct for
a Black Badge versions of a Dawn, Ghost and Wraith models is
heading expectations. The new Rolls-Royce Cullinan was presented in
May to good commend and has generated a sizeable sequence book
stretching good into subsequent year.

 

All 3 major sales regions contributed to volume
expansion in a initial half of a year. In Europe, the
series of vehicles delivered increasing somewhat year-on-year (562,102
units; +1.2%). Deliveries of BMW Group vehicles were also adult in the
Americas shred (226,061 units; +3.9%), with all
markets in a shred recording volume expansion in a initial half of
2018 , including a USA (176,570 units; +2.8%). Sales sum for
Asia were also aloft for a six-month period
(423,890 units; +1.9%). The BMW Group’s largest market, China, saw a
slight boost in deliveries (300,153 units; +2.2%).

 

Motorcycles shred revamps indication range

 

BMW Motorrad is revamping a indication operation on a large scale in 2018,
with 9 new models being launched. However, prolongation adjustments
required during a ramp-up proviso are carrying a disastrous impact on
smoothness numbers. During a initial six months of the
year, a Motorcycles segment delivered a sum of
86,975 motorcycles and maxi-scooters to business (2017: 88,389 units;
-1.6%). Revenues totalled € 1,182 million (2017:
€ 1,315 million; -10.1%). Profit before financial result
amounted to € 175 million (2017: € 229 million; ‑23.6%),
heading to an EBIT domain of 14.8% (2017: 17.4%). Profit
before tax
for a six-month duration amounted to € 174
million (2017: € 228 million; ‑23.7%).

 

A sum of 51,117 units (2017: 52,753 units; -3.1%) were delivered to
business during a second quarter, generating
revenues of € 658 million (2017: € 695 million;
-5.3%). Profit before financial result fell to € 98
million (2017: € 104 million; -5.8%), analogous to an EBIT margin
in a shred of 14.9% for a entertain (2017: 15.0%). Profit
before tax
for a three-month duration amounted to € 96
million (2017: € 103 million; -6.8%).

 

Financial Services shred stays intentionally on course

 

The Financial Services segment continued to perform
good during a first 6 months of 2018. In total,
932,211 (2017: 934,237; -0.2%) new
credit financing and lease
contracts were sealed during a initial half of 2018.
The contract portfolio with sell customers
comprised 5,506,901 contracts during 30 June 2018 (31 Dec 2017:
5,380,785 contracts; +2.3%). Segment revenues
totalled € 13,815 million (2017: € 14,090 million; -2.0%).
Profit before tax amounted to € 1,166 million
(2017: € 1,184 million; -1.5%) for a six-month period.

 

A sum of 480,303 (2017: 468,603 / +2.5%) new
credit financing and lease
contracts were sealed during a second
quarter
. Segment revenues amounted to
€ 7,141 million (2017: € 7,044 million; +1.4%). Profit before
taxation
amounted to € 605 million (2017: € 589 million; +2.7%).

 

Increase in workforce size

 

The BMW Group’s workforce comprised 131,636
employees during 30 Jun 2018, 1.3% some-more than during 31 Dec 2017. The
Group continues to partisan learned workers and IT specialists in
future-oriented areas including digitalisation, unconstrained pushing and
electric mobility.

 

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 driven by 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, heated 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.
Deliveries and revenues for the
Automotive segment are both foresee to grow
somewhat to grasp new highs in 2018. Group distinction before
tax
is being targeted during a prior year’s level. The
EBIT margin for a Automotive shred is expected
to sojourn within a aim operation of between 8 and 10%.

 

In tie with a designed bundling of a mobility services, the
BMW Group has announced that – theme to capitulation by antitrust
authorities in a stream year – a investiture of a joint
try will have a one-off gratefulness and gain outcome and result
in an composition to a outlook. Under these circumstances, the
Group distinction before taxation for 2018 would be slightly
aloft than in a prior year. The outcome described above has no
impact on a EBIT domain of a Automotive segment.

 

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

 

* * *

 

The BMW Group – an overview

1st half year 2018

1st half year 2017

Change in %

Deliveries to customers

    

Automotive

units

1,242,507

1,220,819

1.8

Thereof:  BMW

units

1,059,296

1,038,030

2.0

   MINI

units

181,430

181,214

0.1

   Rolls-Royce

units

1,781

1,575

13.1

Motorcycles

units

86,975

88,389

-1.6

 

 

 

 

 

Workforce
1                            (compared to
31.12.2017)

131,636

129,932

1.3

 

 

 

 

 

Automotive
shred EBIT margin3

%

9.2

9.8

-0.6 %points

Motorcycles
shred EBIT margin3

%

14.8

17.4

-2.6 %points

EBT domain BMW Group
3

%

12.7

12.6

+0.1 %points

 

 

 

 

 

Revenues
3

€ million

47,717

49,691

-4.0

Thereof:
Automotive3

€ million

41,518

42,166

-1.5

Motorcycles3

€ million

1,182

1,315

-10.1

Financial Services

€ million

13,815

14,090

-2.0

Other Entities

€ million

3

3

Eliminations3

€ million

-8,801

-7,883

-11.6

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

5,479

5,753

-4.8

Thereof:
Automotive3

€ million

3,800

4,121

-7.8

Motorcycles

€ million

175

229

-23.6

Financial Services

€ million

1,176

1,192

-1.3

Other Entities

€ million

16

12

33.3

Eliminations3

€ million

312

199

56.8

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

6,038

6,238

-3.2

Thereof:
Automotive3

€ million

4,343

4,676

-7.1

Motorcycles

€ million

174

228

-23.7

Financial Services

€ million

1,166

1,184

-1.5

Other Entities

€ million

78

19

Eliminations3

€ million

277

131

 

 

 

 

 

Income taxes
3

€ million

-1,648

-1,747

5.7

Net profit
3,4

€ million

4,383

4,491

-2.4

Earnings per share
2,3

 €

6.60/6.61

6.79/6.80

-2.8/-2.8

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.

4 2018 figure incl. -7 Mio. € from dropped operations

 

The BMW Group – an overview

2nd quarter
 2018

2nd entertain 2017

Change in %

Deliveries to customers

    

Automotive

units

637,878

633,582

0.7

Thereof:  BMW

units

541,849

534,585

1.4

   MINI

units

95,055

98,155

-3.2

   Rolls-Royce

units

974

842

15.7

Motorcycles

units

51,117

52,753

-3.1

 

 

 

 

 

Workforce
1                            (compared to
31.12.2017)

131,636

129,932

1.3

 

 

 

 

 

Automotive
shred EBIT margin3

%

8.6

10.1

-1.5 %points

Motorcycles
shred EBIT margin3

%

14.9

15.0

-0.1 %points

EBT domain BMW Group
3

%

11.5

11.9

-0.4 %points

 

 

 

 

 

Revenues
3

€ million

25,023

25,765

-2.9

Thereof:
Automotive3

€ million

22,192

22,165

0.1

Motorcycles3

€ million

658

695

-5.3

Financial Services

€ million

7,141

7,044

1.4

Other Entities

€ million

1

1

Eliminations3

€ million

-4,969

-4,140

-20.0

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

2,746

2,932

-6.3

Thereof:
Automotive3

€ million

1,919

2,244

-14.5

Motorcycles

€ million

98

104

-5.8

Financial Services

€ million

607

588

3.2

Other Entities

€ million

7

8

-12.5

Eliminations3

€ million

115

-12

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

2,873

3,058

-6.0

Thereof:
Automotive3

€ million

2,062

2,391

-13.8

Motorcycles

€ million

96

103

-6.8

Financial Services

€ million

605

589

2.7

Other Entities

€ million

8

23

-65.2

Eliminations3

€ million

102

-48

 

 

 

 

 

Income taxes
3

€ million

-784

-841

6.8

Net profit
3,4

€ million

2,082

2,217

-6.1

Earnings per share
2,3

 €

3.13/3.14

3.34/3.35

-6.3/-6.3

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

4 2018 figure incl. -7 Mio. € from dropped operations

 

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

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

Twitter: http://twitter.com/BMWGroup

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