- Significant revenues and earnings growth
- Automotive segment EBIT margin within target range
- Sales of electrified vehicles doubled
- Made in Germany: BMW iNEXT to be produced in Dingolfing
- BMW Group reaffirms outlook for full year 2017
-
Krüger: Focus on profitability and rigorous
implementation of Strategy NUMBER ONE NEXT
Munich.
The BMW Group has begun the financial year 2017 with a solid
first quarter and made excellent progress in terms of implementing
Strategy NUMBER ONE NEXT. Deliveries of
electrified vehicles, for instance, doubled to nearly 20,000 units
in the first quarter. In addition, the BMW Group announced its
intention to build the BMW iNEXT as the company’s technological
spearhead at its Dingolfing plant. The iNEXT, which is due to be
unveiled in 2021, will set the benchmark in terms of automated
driving, electrification and connectivity. The decision underlines
the significance of Germany as a location for developing future
technologies and shaping tomorrow’s mobility.
The BMW Group recorded significant first-quarter growth in terms
of both revenues and net profit. Alongside a solid operating
performance, positive valuation-related earnings effects included in
the financial result also contributed to the sharp rise in profit
before taxes. “We shall continue to focus on rigorously implementing
Strategy NUMBER ONE NEXT and ensuring
sustainable high profitability in order that we can shape future
mobility by leveraging our own resources. That is how we will
measure our success,” commented Harald Krüger,
Chairman of the Board of Management of BMW AG, in Munich on Thursday.
In the first quarter, the BMW Group embarked on the most
substantial model offensive in its history with the launch of the
new BMW 5 Series. Around 40 new and updated models of the BMW
Group’s three premium brands will be brought to market during 2017
and 2018. “Customers are excited by the new 5 Series Sedan, as we
can see in its extremely good market reception. We expect the BMW
Group’s three premium brands to set new delivery records again in
2017 and the Group to remain the leading manufacturer of premium
vehicles,” stated Krüger.
Particular emphasis is being placed on the upper-premium
segment. Through the focussed addition of highly emotive vehicles,
the BMW Group is targeting significant sales volume growth in this
segment by 2020. Alongside the BMW 7 Series, the BMW Group will be
launching other models in this segment, including the BMW X7.
New sales volume, revenues and earnings records in first quarter
First-quarter deliveries of BMW, MINI and Rolls-Royce brand
vehicles rose by 5.3% to 587,237 units (2016: 557,605 units). All
the Group’s major sales regions contributed to this increase. Thanks
to this strong performance, Group revenues for the
period from January to March were significantly higher at € 23,448
million (2016: € 20,853 million; +12.4%). Profit before
financial result amounted to € 2,646 million, 7.7% up on
the previous year’s corresponding figure of € 2,457 million.
Group profit before tax (EBT) was also
significantly higher at € 3,005 million (2016: € 2,368 million).
This significant increase was largely due to the following
effects: a positive valuation effect of € 183 million
in connection with the participation of new investors in the mapping
service HERE, an increase in the other financial result
of € 122 million, driven mainly by valuation effects, and a
higher profit contribution from the Chinese joint venture BMW
Brilliance Automotive Ltd. As a result, the Group’s EBT
margin climbed to 12.8% (2016: 11.4%) in the first
quarter. Group net profit rose by 31.0% to € 2,149
million (2016: € 1,641 million).
“The first quarter results lay a very sound foundation for us to
achieve our ambitious targets for 2017. Given that the BMW Group is
embarking on the biggest model offensive in its corporate history,
we expect start-up and marketing costs regarding new models to
increase over the course of the year. We will also incur high
upfront expenditure in connection with electric mobility and
autonomous driving,” pointed out Nicolas Peter,
member of the Board of Management of BMW AG responsible for Finance.
“Short-term gain is not the decisive factor for us: we remain
focussed on sustainable, profitable growth.”
Automotive segment: EBIT margin within target range
First-quarter revenues for the
Automotive segment grew by 10.0% to € 20,692
million (2016: € 18,814 million). EBIT improved by
6.1% to € 1,871 million (2016: € 1,763 million). The EBIT
margin
in the Automotive segment came in at 9.0% (2016: 9.4%) and was
therefore within the targeted range of between 8 and 10%. On account
of the factors described above, profit before tax
rose by 31.4% to € 2,279 million (2016: € 1,734 million).
BMW Group vehicles with electrified drivetrains performed
particularly well during the first quarter, as nearly 20,000 BMW i3,
BMW i8 and BMW iPerformance plug-in hybrids were sold, twice the
previous year’s corresponding figure. “We are therefore well on
course to delivering more than 100,000 electrified vehicles for the
first time in 2017,” Krüger stated.
Electrified vehicles accounted for more than three per cent of
all BMW Group vehicle deliveries to customers in the first quarter
(Q1 2016: 1.7%).
With the launch of the BMW i3 almost four years ago, the BMW
Group was an early pioneer of electric mobility and has remained
true to its strategy ever since. When the first MINI brand plug-in
hybrid model is introduced in summer 2017, the BMW Group will have
nine electrified models in its portfolio. The BMW i8 Roadster is set
to follow in the coming year and the first all-electric MINI is due
in 2019. In 2020, the battery-powered BMW X3 will integrate
all-electric mobility into the Group’s core brand. One year later,
the new BMW iNEXT is set to take to the roads. As the BMW Group’s
new technological spearhead, it will set the benchmark in the
future-oriented ACES fields
Autonomous, Connected,
Electrified and Services/Shared.
Deliveries of BMW brand vehicles totalled 503,445
units (2016: 478,743; +5.2%), surpassing the half-million figure for
the first time in an opening quarter. Sales volume growth came from
various areas, including good contributions made by the BMW Group’s
flagship model, the BMW 7 Series, and the BMW X-family models. Nearly
16,000 units of the BMW 7 Series were sold, 50.2%
more than one year earlier. Sales of the BMW X1
jumped by 29.5% to 66,063 units in the first quarter. Similarly, the
BMW X3 (41,742 units; +7.8%) and the
BMW X5 (45,892 units; +17.7%) also recorded
significant growth.
Sales of 83,059 units during the first three months 2017 also
represented a new first-quarter sales volume record for the
MINI brand (2016: 78,311 units; +6.1%). The new
MINI Clubman reported a significant rise, with
deliveries to customers increasing to 14,830 units (2016: 12,173
units; +21.8%). First-quarter sales of the new MINI
Convertible tripled to 7,705 units (2016: 2,553 units). With
47,530 units sold, the MINI 3 and 5 door models
matched their previous year’s performance (2016: 47,396 units; +0.3%).
Following the second highest annual sales in 2016,
Rolls-Royce Motor Cars sales in the first quarter
of 2017 were up year-on-year. This was based on full market
availability of Dawn compared with the same period last year. In
total, 733 Rolls-Royce motor cars were delivered to customers across
the globe (+33.0%). Demand for Rolls-Royce models remains strong in
most regions, although this is set against ongoing market volatility
in the global luxury industry as a whole. Rolls-Royce continues to
strive for long-term sustainable growth.
The BMW Group’s upward sales volume trend continued in
Europe, with 267,996 units (2016: 257,120 units)
delivered to customers during the first three-month period, up 4.2%
year-on-year. Solid growth was reported in a number of markets,
including Great Britain (+6.5%; 63,004 units), France (+5.4%; 21,943
units) and Italy (+6.7%; 21,278 units).
First-quarter sales of BMW Group vehicles in Asia
rose by 9.2% to surpass the 200,000-unit mark (200,140 units; 2016:
183,204 units). Significant growth was also achieved on the Chinese
mainland, where sales climbed by 12.4% to 142,958 units. First-quarter
deliveries in Japan went up by 5.2% to 19,681 units.
Sales in the
Americas
region increased slightly by 2.0% to 102,238 units (2016:
100,245 units), including 82,169 units delivered to customers in the
USA (+0.7%).
Motorcycles segment sets new delivery record
The Motorcycles segment had a successful start
to the year, delivering 35,636 motorcycles and maxi-scooters (2016:
33,788 units) to customers during the first quarter, 5.5% up on the
previous year. Revenues grew by 7.0% to € 623
million (2016: € 582 million). Higher volumes and positive sales-mix
factors helped segment profit before financial
result to jump by 33.0% to € 125 million (2016: € 94
million). Influenced by seasonal factors at the start of the
motorcycle season, the segment EBIT margin came in
at 20.1% (2016: 16.2%). Profit before tax also
improved by 33.0% to € 125 million (2016: € 94 million).
Financial Services segment firmly on course
The Financial Services segment continued to
perform well during the first quarter. A total of 465,634
new credit financing and leasing contracts (2016: 413,372
contracts) were signed with customers between January and March, an
increase of 12.6%. Including contracts with dealerships, 5,214,729
credit financing and leasing contracts were in
place at the end of the first quarter (31 March 2016: 4,786,441
contracts), 8.9% more than one year earlier. First-quarter
segment revenues rose by 16.8% to € 7,046 million
(2016: € 6,032 million), while profit before tax
was 4.4% higher at € 595 million (2016: € 570 million).
Workforce increased
The size of the BMW Group’s workforce increased
by 3.0% year-on-year and comprised 126,317 employees (2016: 122,692
employees) worldwide. The BMW Group continuously hires skilled
experts and IT specialists in future-oriented areas, such as
digitalisation and automated driving.
BMW Group reaffirms targets for the financial year 2017
The BMW Group is confident of achieving 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 2017,” stated Krüger. With its three premium brands,
the BMW Group is therefore confident it will remain the world’s
leading manufacturer of premium vehicles in 2017.
Automotive segment revenues
are also set to grow slightly over the year on the back of
higher sales volumes. The EBIT margin for the
Automotive segment in 2017 is forecast to remain within the targeted
range of between 8 and 10%.
Forecasts for the current year are based on the assumption that
worldwide economic and political conditions will not change significantly.
* * *
The BMW Group – an overview
1st quarter 2017
1st quarter 2016
Change in %
Sales volume
Automotive
Units
587,237
557,605
5.3
Thereof: BMW
Units
503,445
478,743
5.2
MINI
Units
83,059
78,311
6.1
Rolls-Royce
Units
733
551
33.0
Sales volume Motorcycles
Units
35,636
33,788
5.5
Workforce
1
126,317
122,692
3.0
EBIT margin Automotive
Segment
Percent
9.0
9.4
-0.4 %points
EBIT margin Segment Motorcycles
Percent
20.1
16.2
+3.9 %points
EBT margin BMW Group
Percent
12.8
11.4
+1.4 %points
Revenues
€
million
23,448
20,853
12.4
Thereof: Automotive
€ million
20,692
18,814
10.0
Motorcycles
€
million
623
582
7.0
Financial Services
€ million
7,046
6,032
16.8
Other Entities
€
million
2
1
–
Eliminations
€
million
-4,915
-4,576
-7.4
Profit before financial result
(EBIT)
€ million
2,646
2,457
7.7
Thereof: Automotive
€ million
1,871
1,763
6.1
Motorcycles
€
million
125
94
33.0
Financial Services
€ million
604
591
2.2
Other Entities
€
million
4
11
-63.6
Eliminations
€
million
42
-2
–
Profit before tax (EBT)
€ million
3,005
2,368
26.9
Thereof: Automotive
€ million
2,279
1,734
31.4
Motorcycles
€
million
125
94
33.0
Financial Services
€ million
595
570
4.4
Other Entities
€
million
-4
-2
–
Eliminations
€
million
10
-28
–
Income taxes
€
million
-856
-727
-17.7
Net profit
€
million
2,149
1,641
31.0
Earnings per share
2
€
3.26/3.26
2.48/2.48
31.5/31.5
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
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 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 2016, the BMW Group sold approximately 2.367 million cars and
145,000 motorcycles worldwide. The profit before tax was approximately
€ 9.67 billion on revenues amounting to € 94.16 billion. As of 31
December 2016, the BMW Group had a workforce of 124,729 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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