BMW Group’s operational opening on course

Posted on 08. May, 2019 by in BMW Canada

Munich. Within a severe marketplace environment, the
BMW Group has started a financial year 2019 in line with
expectations in operational terms. Contrary to a prevalent trend in
a sector, a Group’s appealing and significantly younger model
operation enabled a association to set a new record in terms of deliveries
to business in a initial quarter, thereby expanding a marketplace share
of a premium-segment in pivotal regions. These certain developments
were accompanied, however, by augmenting downward vigour on pricing
in some markets.

 

“The Group’s new first-quarter sales record proves that we are
putting a right products on a roads, thereby attracting new
customers, as good as relocating existent clients. In operational
terms, we sojourn resolutely on march and design business to advantage from
tailwinds, generally in a second half of a year, as countless new
models turn available. At a same time, we are experiencing the
impact of high levels of output in countless areas inspiring the
whole automotive sector. In addition, it has also been compulsory to
recognize a sustenance relating to ongoing record of a EU
Commission,” settled Harald Krüger, Chairman of the
Board of Management of BMW AG, on Tuesday in Munich. “Within this
severe environment, we will sojourn loyal to a BMW approach of doing
things. We are entirely focused on a roadmap for destiny mobility and
a severe doing of a Strategy NUMBER ONE  NEXT”.

 

This means, a BMW Group is committed to implementing even faster
processes and leaner structures in sequence to grasp greater
efficiency. The aim is to make sure, a BMW Group has a financial
strength compulsory to change and decisively figure a universe of
sole reward mobility relocating into a subsequent decade.

 

E-mobility continues to accumulate momentum

 

The BMW Group is already a heading provider of electric mobility and
expects to have some-more than half a million of its
state-of-the-art electrified vehicles on a roads by
a finish of a year. The extended operation of electrified vehicles offered
by a BMW Group remained rarely renouned via a initial three
months of 2019. Deliveries of a BMW i3 continued
their ceiling trend, climbing by 16.2% to 9,227 units compared to the
same three-month duration one year earlier. These sum paint by
distant a many successful initial entertain for a innovative BMW i3 since
a launch in 2013.

 

The BMW Group’s plug-in hybrid vehicles are also in high demand. For
instance, more than a entertain of all BMW 2 Series
Active Tourers delivered to business are electrified, while
almost 20% of all MINI Countryman sole are equipped
with a plug-in hybrid drivetrain. In Norway, one of a world’s
heading markets for electrified vehicles, all-electric and plug-in
hybrid vehicles now comment for around three quarters
of all BMW and MINI deliveries.

 

At a commencement of March, a revised plug-in hybrid versions of the
BMW 3, BMW 7 and BMW X5 Series as good as a new BMW X3 with their
extended electric operation were showcased during the
Geneva Motor Show. In April, a revised plug-in hybrid chronicle of the
BMW X1 was launched in Shanghai as an
extended-wheelbase chronicle constructed locally for a Chinese market. By
a finish of a entrance year, a BMW Group will have more than
10
new or revised models versed with fourth-generation
(“Gen 4”) electrified record on a market.

 

From a finish of 2019, these will embody a all-electric
MINI Electric done during a Oxford plant and,
from 2020, a BMW iX3, that will be constructed in
Shenyang, China for a universe market. Together with a pioneering BMW
i3, a BMW i4 and a BMW iNEXT,
a Group will have five all-electric models on the
marketplace by 2021 and a series is scheduled to arise to during slightest twelve
models by 2025. Including a fast flourishing operation of plug-in
hybrids, a BMW Group’s product portfolio will afterwards contain during least
25 electrified models.

 

Openness to new technologies is key

 

“Openness in record is a exigency in sequence to accommodate the
several regulatory and patron mandate in opposite markets.
This is generally loyal given that a introduction of alternative
drivetrains is surpassing during a opposite gait in a several regions
of a world,” emphasised Krüger. “Technological
honesty also means that we will continue to urge a potency of
a explosion engines, while also pulling brazen a e-mobility
plan with both all-electric vehicles and plug-in variety and
investing in new technologies such as fuel cells,” he continued.

 

On a approach toward securing a mobility of a future, a BMW Group
incurred estimable upfront output in a initial entertain 2019. As
expected, output in this area once again exceeded a previous
year’s high level. First-quarter research and
development
losses totalled € 1,396 million, 8.4% adult on the
prior year. Investments in property, plant and
apparatus climbed by some-more than one third to € 999 million (2018: € 734
million; +36.1%). The boost especially associated to a modernisation and
flexibilisation of plant structures as good as a construction of the
Group’s new plant in Mexico. The high suit of electrified
vehicles also contributes to aloft prolongation costs. Unfavourable
sell rate factors and aloft tender element prices also had a
dampening outcome on gain in a duration from Jan to Mar 2019.
An shortcoming of approximately € 1.4 billion was recognized for a
sustenance on a basement of a Statement of Objections perceived from
a EU Commission in tie with ongoing antitrust proceedings.
This sustenance reduced a Automotive segment’s EBIT domain by
approximately 7 commission points compared to a prior year’s
initial quarter.

 

BMW Group to foe EU Commission allegations

As communicated on 5 Apr 2019, a sustenance was recognized on the
basement of a Statement of Objections, that leads a BMW Group to
interpretation that it is illusive that a EU Commission will emanate a
poignant fine. In suitability with International Financial Reporting
Standards, a conditions triggers a requirement to recognize a
provision. The examination of a Statement of Objections and the
investigation of associated files will take some time. As a result, it is
not now probable to entirely weigh a financial outcome.
However, a BMW Group has done it transparent that if compulsory it will
contest a EU Commission’s allegations with all a legal
means during a disposal
.

 

The BMW Group regards these record as an try to proportion the
slight coordination of attention positions per the
regulatory horizon with wrong conglomeration agreements. Based on current
knowledge, a EU Commission is questioning possibly German
car manufacturers cooperated in technical operative groups to
shorten foe in a expansion and rollout of
emission-reduction technologies. From a BMW Group’s perspective,
this conditions can't be compared with conglomeration investigations relating,
for example, to territorial or price-fixing agreements.

 

Fundamentally, a participating engineers from a manufacturers’
expansion departments were endangered with improving empty gas
diagnosis technologies. Unlike conglomeration agreements, a whole industry
was wakeful of these discussions, that did not engage any so-called
tip agreements and did not intend any wreckage to possibly customers
or suppliers in any figure or form.

 

Group outcome shabby by sustenance

 

In a initial entertain 2019, a BMW Group delivered
605,333 BMW, MINI and
Rolls-Royce reward code vehicles to
customers, a new record for a opening entertain of a year (2018:
604,629 units; +0.1%). This certain expansion was shabby to a
vast border by a grant done by a BMW Brilliance Automotive
corner try in China. At € 22,462 million, Group
revenues
were during a identical turn to a prior year (2018:
€ 22,665 million; -0.9%). Influenced by a inauspicious factors described
above, including a sustenance recognized in tie with a EU
proceedings, profit before financial result (EBIT)
for a initial entertain amounting to € 589 million was significantly
down on a prior year (2018: € 2,707 million; -78.2%).
Group distinction before tax (EBT) amounted to € 762
million (2018: € 3,139 million; -75.7%). The Group’s EBT
margin
came in during 3.4% (2018: 13.8%). Group net
distinction
amounted to € 588 million (2018: € 2,282 million; -74.2%).

 

“Our aspirations sojourn high: we wish to grow both sustainably and
profitably. With a Performance NEXT programme, we are taking
pro-active measures to equivalent countless headwinds and have already made
a series of inclusive decisions. Discipline and a transparent concentration on
severe doing of a plan sojourn a pivotal criteria,”
commented Nicolas Peter, Member of a Board of
Management of BMW AG, Finance. “We see creation care and
profitability as essential to keep a heading position in the
automotive industry. This is because we continue to deposit in a future.
The upfront output we are incurring now to serve develop
electric mobility and unconstrained pushing is a exigency for
tomorrow’s success.”

 

One of a outcomes of Performance NEXT, for instance, is that
development times for new car models will be
reduced by as most as one third. On a product side, from 2021
onwards, adult to 50% of today’s drivetrain variants
will be separated in a transition to stretchable vehicle
architectures. Moreover, a indication portfolio is frequently assessed
with a perspective to identifying additional intensity for reducing
complexity
. Synergy and potency opportunities in both
surreptitious purchasing and in materials and prolongation costs are also
being leveraged. By a finish of 2022, a Group expects to realise
intensity potency assets in additional of € 12 billion.

 

Automotive shred quite influenced by sustenance and
other high expenditure

 

The disastrous factors described above quite affected
Automotive shred earnings in a initial quarter.
At € 19,213 million, Group revenues for a period
from Jan to Mar were identical to a prior year (2018:
€ 19,326 million; -0.6%). Due to a disastrous effects referred to
above, EBIT finished during a detriment of € 310 million
(2018: distinction of € 1,881 million). The EBIT margin
therefore came in during -1.6% (2018: +9.7%). Excluding a outcome of the
provision, a EBIT domain was +5.6%. The loss before
tax
amounted to € 27 million (2018: distinction before taxation of € 2,281 million).

 

Worldwide, a BMW code delivered 519,307 units
(2018: 517,447; +0.4% units) to customers, a best first-quarter
outcome to date. The BMW X models were quite popular, above all
a BMW X3 that has also been constructed locally in China given the
summer of 2018. The series of deliveries of this car some-more than
doubled in a initial quarter.

 

The MINI code delivered 84,820 units (-1.8%) to
business worldwide during a three-month duration underneath report. The
revised chronicle of a MINI Clubman had a universe entrance during the
Shanghai Auto Show in April. Preparations are also stability for the
launch of a new all-electric MINI in a march of a stream year.
Production is scheduled to start during a Group’s Oxford plant during the
finish of a year.

 

Following a best sales outcome in a 115-year story in 2018, the
Rolls-Royce code remained resolutely on expansion march in
a initial entertain 2019. Worldwide, 1,206 Rolls-Royce code vehicles
were delivered to business (+49.4%), with expansion available opposite all
regions. Demand for all Rolls-Royce models stays high, driven in
sole by a rarely renouned Phantom. Customer seductiveness in the
Cullinan is also unusually strong. Accordingly, a sequence books
are full to a domain good into a fourth entertain of a stream year.

 

BMW Group strives for uniformly offset deliveries worldwide

 

The BMW Group stays committed to a plan of achieving a
well-balanced placement of deliveries worldwide, leveraging its
rarely stretchable production, sales and selling structures to even out
vacillating direct between sole regions.

 

In Europe, first-quarter deliveries of 270,950 units
were during a identical turn to one year surpassing (2018: 270,725; +0.1%). In
Germany, a BMW Group available plain growth, with deliveries adult to
72,592 units (2018: 68,294 units: +6.3%).

 

First-quarter deliveries of BMW, MINI and Rolls-Royce code vehicles
in Asia rose somewhat to 217,200 units (2018: 212,693
units; + 2.1%). China contributed significantly to this performance,
with deliveries of a Group’s 3 brands adult by 10.2% to a sum of
168,663 units (2018: 153,094 units).

 

In a Americas region, deliveries were slightly
down to 104,215 units (2018: 106,348 units; -2.0%) between Jan and
March. The figure for a USA also declined somewhat to 83,158 units
(2018: 84,630 units; -1.7%).

 

Motorcycles shred increases revenues and earnings
significantly

 

BMW Motorrad increasing deliveries of
a motorcycles and maxi-scooters by 7.7% to 38,606 units (2018:
35,858 units), sourroundings a new first-quarter record for a eighth year
in succession. Revenues grew by 11.8% to € 586
million (2018: € 524 million). EBIT also improved
significantly, rising to € 89 million for a three-month duration under
news (2018: € 77 million; +15.6%). The first-quarter EBIT
margin
came in during 15.2% (2018: 14.7%).

 

Successful start to year for Financial Services segment

 

The contract portfolio underneath management within the
Financial Services segment edged adult by 0.5% to
5,735,975 contracts during a finish of a stating duration (31 December
2018: 5,708,032 contracts). During a initial quarter, 469,624 (2018:
451,908 contracts: +3.9%) new credit financing and lease
contracts
were sealed with sell customers.
Revenues grew by 8.9% to € 7,146 million (2018: €
6,561 million). Profit before tax improved
significantly, rising by 13.4% to € 627 million (2018: € 553 million).

 

Workforce during prior year’s level

 

The BMW Group’s workforce comprised 134,849 employees during a finish of
a initial quarter, identical to a turn during 31 Dec 2018 (134,682;
+0.1%). The Group continues to partisan learned workers and IT
specialists on a resourceful basement to work on future-focussed topics
including digitalisation, unconstrained pushing and electric mobility.
Nevertheless, a aim for 2019 is to keep a workforce during the
prior year’s level.

 

BMW Group reaffirms targets for stream financial year

 

The BMW Group sets itself desirous targets, even in politically and
economically violent times. With a young product
portfolio
, serve rejuvenated by new models, a Group aims
to sojourn a world’s heading automotive manufacturer in a premium
segment, underpinned by expansion in all vital sales regions. In perspective of
a several indication changes now in progress, business is expected
to see a clever upswing in a second half of a stream financial year.

 

The BMW Group will continue to deposit estimable amounts in new
technologies and a mobility of a destiny in 2019. Costs are also
being driven adult in other areas, including a significantly higher
cost of complying with stricter CO glimmer legislation. Against
this background, rising prolongation costs are
approaching to have a dampening outcome on earnings. Moreover, unfavourable
banking factors and aloft tender materials prices are approaching to have
a middle to high three-digit million disastrous impact. At a same
time, a ongoing emanate of general trade conflicts stays a
source of uncertainty.

 

Taking all these factors into account, a BMW Group is assured of
a ability to grasp volume expansion in a Automotive
segment
, where it is targeting a slight boost in the
series of deliveries to business in 2019. Within a fast business
environment, an EBIT domain in a operation of 8 to 10% stays the
aspiration for a BMW Group. However, a ability to influence
underlying conditions is limited. Without a outcome of a provision
for a ongoing antitrust record amounting to € 1.4 billion, the
aim operation for a EBIT domain of 6-8% has not changed. However,
given a sustenance has a disastrous impact of 1.5 commission points on
a EBIT margin, a BMW Group is awaiting a domain in a Automotive
shred for 2019 between 4.5 and 6.5%.

 

With a rejuvenated indication range, a Motorcycles
segment
is foresee to grasp a plain boost in deliveries
to customers. As in 2018, a shred EBIT domain is approaching to be
within a aim operation of 8 to 10%.

 

In serve to a disastrous gain effects referred to above, the
fact that some certain gratefulness effects available in 2018 will not be
steady in 2019 will outcome in a poignant decrease in a Group’s
financial result. Group distinction before tax is
therefore also approaching to be good next a prior year’s level.

 

Forecasts for a stream year are formed on a arrogance that
worldwide mercantile and domestic conditions will not
change significantly. Any decrease in conditions could have a
disastrous impact on a outlook. The BMW Group will energetically continue
to exercise pivotal measures to expostulate expansion on a one palm and improve
opening and potency on a other, thereby formulating a headroom
to capacitate it to assistance shape a future and secure its
possess competitiveness going forward. Its operational and financial
strength place a BMW Group in an glorious position to play a key
purpose in moulding a stream mutation of a automotive sector
and raise a leading role in a automotive industry.

 

* * *

 

The BMW Group – an Overview

1st quarter
 2019

1st quarter
 2018

Change in %

Deliveries to customers

    

Automotive

units

605,333

604,629

0.1

thereof: BMW

units

519,307

517,447

0.4

 MINI

units

84,820

86,375

-1.8

 Rolls-Royce

units

1,206

807

49.4

Motorcycles

units

38,606

35,858

7.7

 

 

 

 

 

Workforce
1                          (compared to
31.12.2018)

134,849

134,682

0.1

 

 

 

 

 

EBIT domain Automotive shred
3

%

-1,6

9,7

-11.3 % pts.

EBIT domain Motorcycles segment
3

%

15,2

14,7

+0.5 % pts.

Pre-tax lapse on sales
3

%

3,4

13,8

-10.4 % pts.

 

 

 

 

 

Revenues
3

€ million

22,462

22,665

-0.9

thereof: Automotive

€ million

19,213

19,326

-0.6

Motorcycles

€ million

586

524

11.8

Financial
Services3

€ million

7,146

6,561

8.9

Other Entities

€ million

1

2

-50.0

Eliminations3

€ million

-4,484

-3,748

-19.6

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

589

2,707

-78.2

thereof: Automotive

€ million

-310

1,881

Motorcycles

€ million

89

77

15.6

Financial
Services3

€ million

648

561

15.5

Other Entities

€ million

4

9

-55.6

Eliminations3

€ million

158

179

-11.7

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

762

3,139

-75.7

thereof: Automotive

€ million

-27

2,281

Motorcycles

€ million

87

78

11.5

Financial
Services3

€ million

627

553

13.4

Other Entities

€ million

-58

70

Eliminations3

€ million

133

157

-15.3

 

 

 

 

 

Income taxes
3

€ million

-218

-857

74.6

Net distinction for a year
3,4

€ million

588

2,282

-74.2

Earnings per share
2,3

 €

0.85/0.85

3.44/3.44

-75.3/-75.3

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 Prior year sum practiced due to first-time application
of revised IFRS 16, see note [5] to a Group Financial Statements as
of 31 Dec 2018.

4 Value for Q1 2019 including € 44 million from
dropped operations

 

 

For queries, greatfully contact:

 

Corporate Communications

 

Max-Morten Borgmann, Corporate Communications

Telephone:
+49 89 382-24118
, Max-Morten.Borgmann@bmwgroup.com

 

Mathias Schmidt, Head of Corporate and Culture Communications

Telephone:
+49 89 382-24544
, 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 2018, a BMW Group sole over 2,490,000 newcomer vehicles and
some-more than 165,000 motorcycles worldwide. The distinction before taxation in the
financial year 2018 was € 9.815 billion on revenues amounting to
€ 97.480 billion. As of 31 Dec 2018, a BMW Group had a
workforce of 134,682 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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