Statement by Dr. Nicolas Peter, Member of a Board of Management of BMW AG, Finance, Conference Call Interim Report to 30th Jun 2018

Posted on 02. Aug, 2018 by in BMW Canada

  • development activities for a 8 Series indication operation and new X vehicles.

     

    We also design collateral output to strech a new all-time high
    in 2018. The categorical reasons are a persisting construction of the
    plant in Mexico and a vast series of indication ramp-ups. This
    includes significantly augmenting ability for a X models. By
    a finish of June, we had invested a sum of 1.58 billion euros,
    especially in property, plant and equipment. This volume is around 120
    million euros some-more than a prior year. The capex ratio was
    aloft than in a initial 6 months of 2017, during 3.3%. For a full
    year, we design a ratio of around 5%.

     

    Despite these disastrous effects, pre-tax gain totalled 6.04
    billion euros for a initial 6 months and around 2.87 billion
    euros for a second quarter. Both a EBT domain of 11.5% for the
    entertain and 12.7% for a initial half year were above a 10% target.

     

    Now let´s take a demeanour during a particular segments, starting with
    a Automotive Segment. In a initial half of 2018, we delivered
    some-more than 1.2 million vehicles to customers. All vital sales
    regions reported growth. The slight downward trend in revenues is
    especially due to banking headwinds and a greatly competitive
    environment. Adjusted for banking effects, revenues were adult 2.4%.

     

    To make fast swell in destiny technologies, we also continued
    to sinecure competent staff in a second quarter. As we already
    mentioned, we once again increasing investigate and development
    spending. At a same time, we are now in a routine of
    modernising and standardising a IT landscape.

     

    Despite aloft costs for destiny projects, additional currency
    headwinds and heated competition, a Automotive Segment’s
    handling gain remained high during 3.8 billion euros. In the
    second quarter, we were once again means to equivalent some of a high
    additional costs by potency measures. The EBIT domain of
    9.2% for a half year and 8.6% for a entertain are within our
    aim range.

     

    Thanks to new models like a 5 Series, a BBA corner venture
    contributed around 100 million euros some-more to gain than the
    prior year. Overall, BBA sales increasing by around 15%, to more
    than 215,000 units. The indication descent has also had a positive
    impact on pricing. Pre-tax gain for a initial half year
    totalled around 4.34 billion euros. With a giveaway money upsurge of 1.94
    billion euros in a Automotive Segment during a half-year mark, we
    are on lane to accommodate a aim for a year of some-more than 3
    billion euros.

     

    The Financial Services Segment continued to perform well. Since
    a start of a year, a sum portfolio has increasing by 2.3%
    to some-more than 5.5 million contracts. More than 930,000 new
    contracts were resolved with business in a initial half of the
    year. The invasion rate was on a standard with a prior year at
    47.4%. Second-quarter pre-tax gain climbed 2.7% to 605 million euros.

     

    We also sojourn good positioned on a risk side. Our credit loss
    ratio stays low and residual values for a leasing portfolio
    have grown as expected. For all risks, we have made
    suitable provisions.

     

    Let’s take a brief demeanour during a Motorcycles Segment.

    Business expansion in a initial half year was affected, among
    other things, by a ramp-ups for several indication changes. In the
    year to a finish of June, motorcycle sales therefore decreased
    slightly. Despite these effects, a second-quarter EBIT domain of
    14.9% was still on standard with final year. The shred EBIT for the
    initial 6 months totalled 175 million euros.

     

    Ladies and Gentlemen,

    Let’s now spin to a outlook. New products will generate
    certain sales movement in a second half of a year. The 5
    Series is now entirely accessible in China, where we’ve also just
    recently launched a new locally-produced X3. We will be doubling
    ability for a X3 and X4 to around 400,000 units per year over
    a middle term. More vital launches are designed adult in a autumn
    and winter: with important, high domain models like a new X5,
    a X7, a new 8 Series and a Rolls-Royce Cullinan in a pipeline.

     

    We are on report with a WLTP transition, that is roughly complete.

     

    Against this background, we are means to endorse a superintendence for
    a stream year. Of course, we continue to guard a current
    trade conditions really closely. If conditions mellow any
    further, we can't order out effects on a guidance.

     

    At Group level, we design gain before taxation to be on standard with
    a high turn of a prior year. In a Automotive Segment –
    notwithstanding high RD costs and a poignant headwind from the
    clever euro – we design a slight boost in deliveries and
    revenues. We also design a EBIT domain to sojourn within the
    operation of 8 to 10%.

     

    In a Motorcycles Segment, bolstered by new products, we expect
    to see a slight boost in deliveries, with an EBIT domain in the
    operation of 8-10%. And, in a Financial Services Segment, we are
    aiming for a lapse on equity above a aim figure of 14%.

     

    Ladies and Gentlemen,

    Profitability, expansion and creation are a cornerstones of our
    business success. The BMW Group aspires to be a transparent technology
    leader. To grasp this, we are regulating a financial resources to
    make investments targeted for destiny success.

     

    Our business sourroundings will sojourn volatile. However,
    severe conditions are always an event to leverage
    rival advantages and to gain on new ones. Our
    vital concentration stays transparent and we continue to say our
    superintendence for a full year.

     

    Thank you.

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