- Third quarter: Net profit up 15 percent
- Automotive segment: EBIT margin remains in target range
- Full year 2016: Forecast reaffirmed
- E-mobility: Over 100,000 electrified BMW vehicles on the streets today
- E-mobility: BMW Group to expand electrification of core brands to
include MINI and BMW X3 battery versions
Munich.
The BMW Group continued to chart a course of profitable growth
in the third quarter 2016 and revealed how the next stages of its
Strategy Number ONE NEXT will be
implemented. As the world’s leading provider of premium products and
services for individual mobility, the BMW Group recorded its best
ever third quarter sales volume and net profit figures. The company
also published details regarding the second phase of its
electrification strategy.
“We posted new record earnings and continued to grow profitably
– thereby maintaining a strong basis for the consistent
implementation of our strategy,” said Harald Krüger,
Chairman of the Board of Management of BMW AG, on Friday.
“We are already achieving measurable success in the areas in which
the entire sector is judged, namely our successful electrification
strategy, with more than 100,000 electric vehicles on the roads
already today, and our consistent achievement of high profitability,
which enables us to finance future investments from our own resources.”
Krüger
continued: “BMW i has always stood for a great deal more than
alternative powertrains: BMW i is our ‘spearhead of innovation’,
ensuring that the BMW Group maintains its pioneering technological
role. We have already proved this in the field of electric mobility
– and we continue to write our own success story in the fields of
automated driving and digitalisation.”
Three years after the successful launch of BMW i, the BMW Group
is now ready to present the second phase of its electric mobility
strategy. Alongside the previously announced expansion of the BMW i
model range to include the BMW i8 Roadster and the BMW iNEXT, the
BMW Group will press ahead with its plans to systematically transfer
all-electric, battery-powered mobility to its core brands. The first
step will be an all-electric MINI in 2019, followed by an
all-electric BMW X3 in 2020.
“We are absolutely convinced that the mobility of tomorrow is
sustainable,” said Krüger. “Years ago, we announced
our unambiguous commitment to electric mobility and achieved
technological leadership in this field. Growing customer demand
confirms that we are on the right track and that now is the right
time to take the next steps.”
In the third quarter alone, the BMW Group delivered more than
18,000 electric BMW i and BMW iPerformance vehicles to customers,
twice the figure achieved in the same period last year. For the full
year 2016, the BMW Group expects to sell more than 60,000 vehicles
featuring either all-electric or plug-in hybrid powertrains.
BMW Group posts best-ever figures for the first nine months of 2016
Third-quarter sales volume
of the BMW Group’s three premium brands (BMW,
MINI and Rolls-Royce) climbed by 7.1% to reach 583,499 units (2015:
545,062 units). These figures mark a new all-time high
for a third quarter and safeguard the BMW Group’s position as the
world’s leading manufacturer of premium vehicles.
Third-quarter revenues
rose by 4.6% to € 23,362 million (2015: € 22,345 million).
Adjusted for exchange rate factors, revenues increased by 6.6%. At
€ 2,380 million, profit before financial result
(EBIT) was slightly higher than one year earlier (2015: € 2,354
million; +1.1%). Group profit before tax (EBT)
improved by 13.8% to € 2,575 million (2015: € 2,263 million).
Net profit climbed by 15.3% to € 1,821 million
(2015: € 1,579 million), a new record for a third quarter.
Nine-month sales
recorded by the Automotive segment rose by 6.2% to reach a new
high of 1,746,638 units (2015: 1,644,810 units). The strategy of
striving to achieve an evenly balanced distribution of sales
worldwide continued to pay off, allowing fluctuations in individual
markets to be compensated.
In the first nine months,
Group revenues grew by 3.0% to € 69,229 million
(2015: € 67,197 million). Profit before financial
result (EBIT) edged up by 2.2% to € 7,562 million (2015:
€ 7,400 million). Group profit before tax (EBT)
increased by 8.8% to set a new record of € 7,741 million (2015:
€ 7,114 million). Group net profit rose by 11.7% to
€ 5,411 million (2015: € 4,844 million), also marking a new record
for the first nine months of a year.
Automotive segment: EBIT margin within target range
Third-quarter revenues of the Automotive segment
grew by 2.8% to € 21,564 million (2015: € 20,970 million). As
previously reported, upfront expenditure for projects and activities
connected with the implementation of Strategy Number ONE NEXT
will affect earnings more in the second half-year than in the first
half-year. EBIT for the third quarter came in at
€ 1,837 million (2015: € 1,912 million; -3.9%) million, resulting in
an EBIT margin in the Automotive segment of 8.5%
(2015: 9.1%), still within the target range of between 8 and 10%. At
€ 2,030 million, segment profit before tax was
significantly higher than the previous year (€ 1,845 million; +10.0%).
Nine-month
segment revenues grew by 2.8% to € 63,250 million
(2015: € 61,513 million). EBIT increased to € 5,778
million (2015: € 5,525 million; +4.6%), resulting in an EBIT
margin of 9.1% (2015: 9.0%). Profit before
tax climbed to € 6,041 million (2015: € 5,323 million;
+13.5%), the first time it has exceeded six billion euro in the
first three quarters.
In the third quarter, sales of BMW
brand vehicles rose by 6.4% to reach a new high of 493,379 units
(2015: 463,739 units) for the period. The equivalent
nine-month figure of 1,479,936 units (2015: 1,395,780
units; +6.0%) also broke all existing records. Tailwind came from
various sources, including contributions made by the BMW Group’s
flagship model, the BMW 7 Series, and the BMW X models. Nine-month
deliveries of the new BMW 7 Series were 65.8% up on
the previous year, outperforming all of its predecessors during the
launch period. Additional momentum is expected to come from the top
model, the BMW M760Li xDrive. Sales of the BMW X1 in
the nine-month period jumped by 82.0% to 149,670 units, while the
BMW X3 recorded a 16.5% increase to 116,702 units.
Sales of BMW’s electrified models continue to grow –
particularly in Europe and the USA. More than 40,000 BMW
i and BMW iPerformance vehicles had been
delivered to customers by the end of September – and the upward
trend is rising steeply. In September alone, sales of electrified
BMW models exceeded the 7,000 mark.
Including the new
BMW 740e
as well as the
BMW 330e
and the
BMW 225xe Active Tourer
launched in spring, the BMW Group already offers a total of
seven vehicle models that are either all-electric (such as the BMW
i3) or plug-in hybrids which combine an electric motor and a
combustion engine. Moreover, the additional version of the
BMW i3 with significantly extended electric range
that came onto the market in July has also led to a noticeable
increase in demand.
MINI
also increased higher sales figures for the third
quarter, with the number of vehicles sold worldwide rising
by 10.8% to 89,179 units (2015: 80,488 units), including significant
contributions from the new MINI Clubman and MINI Convertible models.
Nine-month sales of MINI climbed by 7.2% to
264,077 units.
Rolls-Royce Motor Cars announced the best ever third
quarter sales performance in the history of the company, up 12.7% on
the previous year. Demand was seen across all Rolls-Royce models,
combined with significant interest in Dawn and Black Badge Wraith and
Black Badge Ghost. Sales in the nine-month period from January to
September totalled 2,625 units, up 0.8% on the previous year. This
result is according to plan and the marque remains optimistic for a
strong year in 2016.
The upward trend for the BMW Group in Europe
continued. Nine-month sales in this region increased by 10.4% to
807,597 units. Double-digit growth was recorded in a number of
markets, including Great Britain (189,712 units; +10.6%), France
(62,340 units; +10.9%) and Italy (59,921 units; +17.7%).
Deliveries of BMW Group vehicles in Asia rose by
9.1% to 548,986 units during the nine-month period, including sales on
the Chinese mainland, which grew by 10.7% to 379,461 units. In Japan,
sales volume rose by 9.5% to 55,408 units.
The number of vehicles sold in the
Americas
region between January and September was 6.5% lower at 338,005
units, including 269,884 units (-8.7%) delivered to customers in the USA.
Continued sales volume growth for Motorcycles segment
The Motorcycles segment continues to perform well. Worldwide
sales of BMW motorcycles and maxi-scooters during the three-month
period from July to September totalled 35,290
units, 3.8% more than the previous year. Third-quarter
segment revenues amounted to € 451 million (2015: € 454
million; -0.7%). Earnings were also down on the previous year,
mainly due to expenses incurred during the start-up phase of a
number of projects connected with implementing BMW Motorrad’s new
strategy. EBIT came in at € 32 million (2015: € 46
million; -30.4%), while profit before tax also
finished at € 32 million (2015: € 45 million; -28.9%).
The segment delivered 116,044 (2015: 112,411) motorcycles and
maxi-scooters to customers during the first nine
months of the year, an increase of 3.2% compared to the
previous year. At € 1,650 million, segment revenues
were similar to the previous year (2015: € 1,643 million: +0.4%).
EBIT amounted to € 224 million (2015: € 273
million; -17.9%), while profit before tax finished
at € 223 million (2015: € 271 million; -17.7%).
Financial Services segment continues to perform well
The Financial Services segment continued to grow its business
during the third quarter, again setting new records. A total of
467,702 new contracts (2015: 420,639 contracts:
+11.2%) were signed between July and September in conjunction with
financing and leasing business. The number of lease and
financing contracts in place with retail customers at the
end of the reporting period increased to 4,599,674 contracts (30
September 2015: 4,227,586 contracts; +8.8%). Segment
revenues rose significantly to € 6,403 million (2015:
€ 5,621 million), 13.9% higher than in the previous year’s
equivalent three-month period. Profit before tax
rose by 22.9% to € 568 million (2015: € 462 million).
In total, 1,341,792 (2015: 1,222,165) new
contracts were signed during the first nine months
of the year relating to financing and leasing business,
9.8% more than the previous year. Segment revenues
were 6.2% higher at € 18,940 million (2015: € 17,833 million).
Profit before tax grew by 8.2% to € 1,641 million
(2015: € 1,517 million).
Employee numbers increased
The workforce grew by 3.9% year-on-year as at
30 September. At the end of the reporting period, 126,013 people
were employed worldwide (2015: 121,316 people). The BMW Group
continues to concentrate its recruitment efforts on attracting the
engineers and skilled staff, including software and IT experts, who
are needed to keep pace with the constantly growing demand for the
company’s vehicles and to create the innovations which will become
the technologies of tomorrow.
BMW Group on course to achieve its financial targets for 2016
The BMW Group is confident it will achieve 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 2016,” stated Krüger. With its three premium brands
– BMW, MINI and Rolls-Royce – the BMW Group is firmly intent on
remaining the world’s leading manufacturer of premium vehicles in 2016.
Automotive segment revenues
are also set to grow slightly over the year, on the back of
increased sales volumes. The Automotive segment’s EBIT
margin in 2016 is forecast to remain within the targeted
range of between 8 and 10%.
The BMW Group expects the Motorcycles segment
to continue its upward trend for the remainder of the current year.
The new R NineT Scrambler and G 310 R models have given the
product portfolio additional breadth and are attracting new customer
groups. A “solid” year-on-year increase in sales
volume is forecast for the full year.
The successful business performance of the Financial
Services segment is expected to continue. Despite rising
equity capital requirements worldwide, for the financial year 2016
the BMW Group forecasts a return on equity (RoE) in
line with the previous year (2015: 20.2%) and therefore once again
above the target rate of at least 18%.
Forecasts for the current year are based on the assumption that
worldwide economic and political environment will not change significantly.
* * *
The BMW Group – an overview
3rd quarter
2016
3rd quarter 2015
Change in %
Sales volume
Automotive
Units
583,499
545,062
7.1
Thereof: BMW
Units
493,379
463,739
6.4
MINI
Units
89,179
80,488
10.8
Rolls-Royce
Units
941
835
12.7
Sales volume Motorcycles
Units
35,290
33,993
3.8
Workforce 1
126,013
121,316
3.9
EBIT margin Automotive Segment
Percent
8.5
9.1
-0.6 %points
Revenues
€
million
23,362
22,345
4.6
Thereof: Automotive
€ million
21,564
20,970
2.8
Motorcycles
€
million
451
454
-0.7
Financial Services
€ million
6,403
5,621
13.9
Other Entities
€
million
1
1
–
Eliminations
€
million
-5,057
-4,701
-7.6
Profit before financial result
(EBIT)
€ million
2,380
2,354
1.1
Thereof: Automotive
€ million
1,837
1,912
-3.9
Motorcycles
€
million
32
46
-30.4
Financial Services
€ million
576
465
23.9
Other Entities
€
million
6
5
20.0
Eliminations
€
million
-71
-74
4.1
Profit before tax (EBT)
€ million
2,575
2,263
13.8
Thereof: Automotive
€ million
2,030
1,845
10.0
Motorcycles
€
million
32
45
-28.9
Financial Services
€ million
568
462
22.9
Other Entities
€
million
40
5
–
Eliminations
€
million
-95
-94
-1.1
Income taxes
€
million
-754
-684
-10.2
Net profit
€
million
1,821
1,579
15.3
Earnings per share 2
€
2.75/2.75
2.39/2.39
15.1
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
The BMW Group – an overview
Jan. – Sept. 2016
Jan. – Sept.
2015
Change in %
Sales volume
Automotive
Units
1,746,638
1,644,810
6.2
Thereof: BMW
Units
1,479,936
1,395,780
6.0
MINI
Units
264,077
246,426
7.2
Rolls-Royce
Units
2,625
2,604
0.8
Sales volume Motorcycles
Units
116,044
112,411
3.2
Workforce 1
126,013
121,316
3.9
EBIT margin Automotive Segment
Percent
9.1
9.0
+0.1 %points
Revenues
€
million
69,229
67,197
3.0
Thereof: Automotive
€ million
63,250
61,513
2.8
Motorcycles
€
million
1,650
1,643
0.4
Financial Services
€ million
18,940
17,833
6.2
Other Entities
€
million
4
4
–
Eliminations
€
million
-14,615
-13,796
-5.9
Profit before financial result
(EBIT)
€ million
7,562
7,400
2.2
Thereof: Automotive
€ million
5,778
5,525
4.6
Motorcycles
€
million
224
273
-17.9
Financial Services
€ million
1,696
1,523
11.4
Other Entities
€
million
29
139
-79.1
Eliminations
€
million
-165
-60
–
Profit before tax (EBT)
€ million
7,741
7,114
8.8
Thereof: Automotive
€ million
6,041
5,323
13.5
Motorcycles
€
million
223
271
-17.7
Financial Services
€ million
1,641
1,517
8.2
Other Entities
€
million
84
126
-33.3
Eliminations
€
million
-248
-123
–
Income taxes
€
million
-2,330
-2,270
-2.6
Net profit
€
million
5,411
4,844
11.7
Earnings per share 2
€
8.19/8.20
7.35/7.36
11.4/11.4
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 2015, the BMW Group sold approximately 2.247 million cars and
nearly 137,000 motorcycles worldwide. The profit before tax for the
financial year 2015 was approximately € 9.22 billion on revenues
amounting to € 92.18 billion. As of 31 December 2015, the BMW Group
had a workforce of 122,244 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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