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BMW Group resolutely on march and confirms targets for 2019

Munich. The BMW Group’s operations remained good on
march during a second quarter, notwithstanding a severe market
environment. In line with forecast, a Group achieved an improvement
in both gain and profitability compared to a initial entertain and
confirms a targets for a financial year 2019.

 

Against a prevalent marketplace trend, in a initial half of a year
a BMW Group delivered some-more vehicles to business than ever before,
thereby gaining shred share in pivotal markets. With a attractive,
rejuvenated operation of models, a BMW code finished with a transparent lead
in a reward shred in June.

 

“At a six-month stage, we are on march to accommodate a targets for the
full year. We are moving business with new products and once again
succeeded in augmenting car deliveries to a new record turn in
a initial half of a year,” pronounced Harald Krüger,
Chairman of a Board of Management of BMW AG, on Thursday in Munich.
“We broach what we guarantee – even in fast-changing times. We
consistently precedence new technologies to successfully master the
huge hurdles confronting a attention during this stream proviso of transformation.”

 

E-mobility continues to accumulate pace

 

As announced, a BMW Group is again significantly upping a pace
when it comes to electric mobility: The 25 electrified models
primarily announced for 2025 will now be accessible in 2023, dual years
progressing than creatively planned. Over half of these 25 models will be
entirely electric. The basement for these models are stretchable vehicle
architectures for all-electric vehicles, plug-in variety and
required combustion-engine models as good as a rarely flexible
prolongation complement that enables a association to respond quickly to
vacillating marketplace requirements. By 2021, deliveries of electrified
vehicles are approaching to double compared to 2019. The BMW Group then
expects to see a high expansion bend adult to 2025, with a volume of
electrified vehicles delivered foresee to grow on normal by more
than 30% per year.

 

As a colonize in a domain of electric mobility, a BMW Group is
already a heading retailer of electrified vehicles. By a finish of
2019, a association skeleton to have some-more than half a million vehicles with
possibly all-electric or plug-in hybrid drivetrains on a road. In two
years’ time, a BMW Group will be charity 5 all-electric series
prolongation vehicles. In serve to a BMW i3
direct for that increasing by some-more than 20% in a initial 6 months of
2019 – prolongation of a all-electric MINI* will embark during the
Oxford plant in November. When a car was presented in July, more
than 40,000 business voiced their penetrating seductiveness in the
MINI ELECTRIC*. In 2020, prolongation of the
all-electric BMW iX3 will start in Shenyang, China,
followed in 2021 by a BMW iNEXT, that will be
done during a BMW Group’s Dingolfing plant. In a same year,
a BMW i4 will go into array prolongation during the
Munich plant.

 

BMW Group flexibly positioned in terms of drivetrain technologies

 

Regulatory and patron mandate can differ significantly from
one marketplace to a next. Alternative drivetrain technologies are also
being introduced during varying speeds in opposite regions. Therefore the
BMW Group is focusing on a following: “We are consistently
expanding e-mobility with all-electric vehicles and plug-in hybrids
and stability to optimise a already careful explosion engines.
Moreover, we are also investing in new technologies such as a fuel
cell,” commented Krüger.

 

On this highway to a destiny of mobility, estimable upfront
output was again required during a duration underneath news and, as
expected, has again exceeded a high turn seen in 2018.
Second-quarter research and expansion expenses
totalled € 1,400 million, 5.9% some-more than a prior year.
Investments in property, plant and apparatus climbed
by some-more than one third to € 1,176 million (2018: € 846 million;
+39.0%), especially due to a ongoing new indication beginning and the
modernisation of a plant structures, creation them some-more flexible. The
flourishing suit of electrified vehicles is also contributing to
aloft prolongation costs. Unfavourable sell rate factors and rising
prices for tender materials had a dampening impact on gain between
Apr and Jun and foe also remained extreme on many markets.

 

Second-quarter Group revenues adult slightly

 

In a second quarter 2019, a BMW Group set a new
record for car sales, comprising 647,504 BMW,
MINI and Rolls-Royce reward vehicles (2018: 637,878 units; +1.5%)
delivered. This certain expansion was mostly shabby by the
grant of a BMW Brilliance Automotive corner try in China.
Group revenues for a three-month duration rose to
€ 25,715 million (2018: € 24,993; +2.9%). Affected by upfront
output for destiny mobility, profit before financial
result
(EBIT) amounting to € 2,201 million was reduce than in
a prior year (2018: € 2,739 million; -19.6%). Group
distinction before tax
(EBT) amounted to € 2,053 million (2018:
€ 2,866 million; -28.4%). The second-quarter EBT
margin
for a Group came in during 8.0% (2018: 11.5%).
Group net distinction amounted to € 1,480 million (2018:
€ 2,076 million; -28.7%).

 

During a first 6 months of 2019, a BMW Group
delivered a sum of 1,252,837 vehicles to business (2018: 1,242,507
units; +0.8%). At € 48,177 million, Group revenues
were somewhat adult on a prior year (2018: € 47,658 million; +1.1%).
Earnings in a initial half of a financial year 2019 were impacted by
a sustenance of approximately € 1.4 billion recognized in a first
entertain in tie with a Statement of Objections perceived from
a EU Commission relating to ongoing antitrust proceedings.
Accordingly, during € 2,790 million, profit before financial
outcome
(EBIT) reported for a six-month duration was
significantly reduce than in a prior year (2018: € 5,446 million;
-48.8%). Group distinction before tax (EBT) amounted to
€ 2,815 million (2018: € 6,005 million; -53.1%), analogous to an
EBT margin of 5.8% (2018: 12.6%). The BMW Group
reports six-month Group net profit of € 2,068 million
(2018: € 4,358 million; -52.5%).

 

“In a second quarter, notwithstanding high upfront output to
expostulate tomorrow’s mobility, we valid a handling potency by
achieving a really plain turn of giveaway money flow,” forked out
Nicolas Peter, Member of a Board of Management of
BMW AG, Finance. “The BMW Group sets itself desirous targets,
even in severe times: We wish to grow sustainably and profitably
and figure a mutation of a industry, entirely leveraging a own
underlying strength.”

 

In sequence to do so, a BMW Group is committed to implementing even
faster processes and leaner structures, ensuing in greater
efficiency. The BMW Group so intends to secure a financial
headroom indispensable to be means to decisively figure particular premium
mobility on a tolerable basement over a entrance decade . Among other
advantages, a Performance NEXT beginning will
digest expansion times for new car models by adult to one third.
On a product side, adult to 50% of today’s drivetrain
variants
will be separated from 2021 onwards, in the
transition to formulating extended stretchable car architectures.
Moreover, a indication portfolio is frequently assessed with a perspective to
anticipating additional intensity ways of reducing
complexity
. Potential for larger synergy and potency in
surreptitious purchasing as good as element and prolongation costs is also
being leveraged via a Group. By a finish of 2022, a Group
intends to save some-more than 12 billion euros by efficiency-boosting measures.

 

Second-quarter EBIT domain during 6.5 percent

 

Automotive shred revenues between Apr and June
totalled € 22,624 million and were therefore somewhat aloft than one
year progressing (2018: € 22,192 million; +1.9%). Against a backdrop of
high upfront expenditure, EBIT amounted to € 1,469
million (2018: € 1,919 million; -23.4%). The second-quarter
EBIT margin came in during 6.5% (2018: 8.6%).
Profit before tax amounted to € 1,483 million
(2018: € 2,062 million; -28.1%).

 

Segment revenues for a six-month
period
totalled € 41,837 million, identical to a previous
year’s turn (2018: € 41,518 million; +0.8%). As described above,
EBIT for a initial half of a year was shabby by
a sustenance (approximately € 1.4 billion) recognized in a first
entertain due to a Statement of Objections perceived from the
EU Commission relating to ongoing antitrust record and
accordingly amounted to € 1,159 million (2018: € 3,800 million;
-69.5%). An EBIT margin of 2.8% (2018: 9.2%) was
therefore available for a initial half year. Profit before
tax
amounted to € 1,456 million (2018: € 4,343 million; -66.5%).

 

Worldwide, a BMW code delivered 1,075,959
vehicles (2018: 1,059,296 vehicles; +1.6%) to customers, a best-ever
outcome for an opening six-month period. The BMW X models were
quite renouned – above all a BMW X3, that has also been
constructed locally in China given a summer of 2018. The series of
deliveries of this car between Jan and Jun increasing by more
90% compared to a prior year. On a behind of this strong
performance, a BMW code achieved a transparent lead in a premium
shred in June.

 

In a rarely rival segment, and with a association progressing its
concentration on profitability, MINI code sales in a first
half of a year decreased slightly. In total, 177,344 vehicles were
delivered between Jan and Jun (2018: 181,430 vehicles; -3.9%).

 

Strong sales expansion continued during Rolls-Royce, with a
sum of 2,534 Rolls-Royce engine cars delivered to business across
a creation (+42.3%) in a initial half of a year. Growth was seen in
each shred worldwide, with postulated direct for all indication families.
Exceptional patron direct for Cullinan continues, ensuing in a
clever sequence book, already stretching into a initial entertain of 2020.
The marque stays on lane for a clever year in 2019.

 

BMW Group strives for uniformly offset smoothness placement worldwide

 

The BMW Group stays committed to a plan of achieving an even
placement of deliveries worldwide, including a well-balanced
attribute between prolongation and smoothness volumes by region. In
this endeavour, it leverages a rarely stretchable prolongation and sales
structures to even out vacillating direct between particular regions.

 

At 550,446 units, deliveries in Europe during the
six-month duration were somewhat down on a prior year (2018:
562,102 units; -2.1%). In Germany, a region’s largest singular market,
a BMW Group available plain growth, with deliveries adult to 161,308
units (2018: 149,718 units: +7.7%).

 

Deliveries of BMW, MINI and Rolls-Royce code vehicles in
Asia during a initial half of a year increasing to
453,355 units (2018: 423,890 units; + 7.0%). China contributed
significantly to this performance, with deliveries of a Group’s
3 brands adult by 16.8% to a sum of 350,592 units (2018: 300,153 units).

 

In a Americas region, deliveries fell slightly
between Jan and Jun to 222,272 units (2018: 226,061 units;
-1.7%). The figure for a USA stood during 174,779 units (2018: 176,570
units; -1.0%).

 

Motorcycles shred reports aloft revenues and gain

 

BMW Motorrad was means to increase
deliveries of a motorcycles and maxi-scooters in
a second quarter to 54,582 units (2018: 51,117
units; +6.8%), ensuing in a analogous boost in
revenues to € 727 million (2018: € 658 million;
+10.5%). EBIT also improved, rising to € 102 million
for a three-month duration (2018: € 98 million; +4.1%). The
second-quarter EBIT margin for a shred came in at
14.0% (2018: 14.9%).

 

Six-month deliveries rose to 93,188 units (2018:
86,975; +7.1%). Segment revenues amounted to € 1,313
million (2018: € 1,182 million; +11.1%). EBIT
increasing to € 191 million (2018: € 175 million; +9.1%), ensuing in
an EBIT margin of 14.5% (2018: 14.8%).

 

Successful start to year for Financial Services segment

 

The contract portfolio underneath management within the
Financial Services segment increasing by 1.7% to
5,806,248 contracts during a finish of a stating duration (31 December
2018: 5,708,032 contracts). During a second quarter, 501,663 (2018:
480,303; +4.4%) new credit financing and lease
contracts
were sealed with sell customers.
Revenues grew by 4.8% to € 7,364 million (2018: €
7,027 million), generating profit before tax of € 573
million (2018: € 603 million; -5.0%).

 

In total, 971,287 new contracts were resolved with
business during a six-month duration underneath report
(2018: 932,211; +4.2%). Segment revenues increasing to
€ 14,510 million (2018: € 13,588 million; +6.8%). Profit
before tax
rose to € 1,200 million (2018: € 1,156 million; +3.8%).

 

Workforce during prior year’s level

 

The BMW Group’s workforce comprised 134,914
employees during 30 Jun 2019, on standard with a turn available during 31
Dec 2018 (134,682; +0.2%). The BMW Group continues to recruit
learned workers and IT specialists on a resourceful basement to rivet in
forward-looking projects such as digitalisation, unconstrained driving
and electric mobility. Over 2019 as a whole, however, capitalising on
healthy fluctuation trends, a aim is to say a workforce at
a 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. Driven by countless indication changes, volume expansion is expected
to continue during a second half of a 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 disastrous impact in a mid-three-digit million range. 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 margin in a operation of 8 to 10%
stays a aspiration for a BMW Group. However, a ability to
change underlying conditions is limited. Without a outcome of the
sustenance for a ongoing antitrust record amounting to ca. € 1.4
billion, a aim operation for a EBIT domain of 6-8% has not changed.
However, given a sustenance has a disastrous impact 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 margin is
approaching to be within a aim operation of 8 to 10%. In the
Financial Services Segment, a BMW Group expects
return on equity to be on standard with final year and
above a aim figure of 14%.

 

In serve to a several disastrous influences described 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 outcome when compared with a prior year. Group
distinction before tax
is therefore also approaching to be
significantly next a prior year’s level.

 

Forecasts done for a stream year are formed on a arrogance that
worldwide mercantile and domestic conditions will not
change significantly. However, any decrease in conditions could
have a disastrous impact on a outlook. The BMW Group will vigorously
continue to exercise pivotal measures for expansion on a one palm and
softened opening and potency on a other, thereby creating
sufficient headroom to capacitate it to assistance shape the
future
and secure a possess competitiveness going forward. Its
operational and financial strength place a BMW Group in an excellent
position to play a pivotal purpose in moulding a ongoing mutation of
a automotive zone and raise a leading role in
a automotive industry.             

* * *

 

The BMW Group – an overview

1st half year 2019

1st half year 2018

Change in %

Deliveries to customers

    

Automotive

units

1,252,837

1,242,507

0.8

Thereof:  BMW

units

1,075,959

1,059,296

1.6

   MINI

units

174,344

181,430

-3.9

   Rolls-Royce

units

2,534

1,781

42.3

Motorcycles

units

93,188

86,975

7.1

 

 

 

 

 

Workforce
1                            (compared to
31.12.2018)

134,914

134,682

0.2

 

 

 

 

 

Automotive
shred EBIT margin

%

2.8

9.2

-6.4 %points

Motorcycles
shred EBIT margin

%

14.5

14.8

-0.3 %points

EBT domain BMW Group
3

%

5.8

12.6

-6.8 %points

 

 

 

 

 

Revenues
3

€ million

48,177

47,658

1.1

Thereof: Automotive

€ million

41,837

41,518

0.8

Motorcycles

€ million

1,313

1,182

11.1

Financial
Services3

€ million

14,510

13,588

6.8

Other Entities

€ million

3

3

Eliminations3

€ million

-9,486

-8,633

-9.9

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

2,790

5,446

-48.8

Thereof: Automotive

€ million

1,159

3,800

-69.5

Motorcycles

€ million

191

175

9.1

Financial
Services3

€ million

1,254

1,166

7.5

Other Entities

€ million

6

16

-62.5

Eliminations3

€ million

180

289

-37.7

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

2,815

6,005

-53.1

Thereof: Automotive

€ million

1,456

4,343

-66.5

Motorcycles

€ million

187

174

7.5

Financial
Services3

€ million

1,200

1,156

3.8

Other Entities

€ million

-155

78

Eliminations3

€ million

127

254

-50.0

 

 

 

 

 

Income taxes
3

€ million

-791

-1,640

51.8

Net profit
3,4

€ million

2,068

4,358

-52.5

Earnings per share
2,3

 €

3.06/3.07

6.56/6.57

-53.4/-53.3

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 total practiced due to first-time application
of revised IAS 16, see note [4] to a Interim Group Financial Statement.

4 Value for 2018 includes a detriment from discontinued
operations of € 7 million; value for 2019 includes a detriment from
dropped operations of € 44 million.

 

The BMW Group – an overview

2nd quarter
 2019

2nd entertain 2018

Change in %

Deliveries to customers

    

Automotive

units

647,504

637,878

1.5

Thereof:  BMW

units

556,652

541,849

2.7

   MINI

units

89,524

95,055

-5.8

   Rolls-Royce

units

1,328

974

36.3

Motorcycles

units

54,582

51,117

6.8

 

 

 

 

 

Workforce
1                            (compared to
31.12.2018)

134,914

134,682

0.2

 

 

 

 

 

Automotive
shred EBIT margin

%

6.5

8.6

-2.1 %points

Motorcycles
shred EBIT margin

%

14.0

14.9

-0.9 %points

EBT domain BMW Group
3

%

8.0

11.5

-3.5 %points

 

 

 

 

 

Revenues
3

€ million

25,715

24,993

2.9

Thereof: Automotive

€ million

22,624

22,192

1.9

Motorcycles

€ million

727

658

10.5

Financial
Services3

€ million

7,364

7,027

4.8

Other Entities

€ million

2

1

100.0

Eliminations3

€ million

-5,002

-4,885

-2.4

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

2,201

2,739

-19.6

Thereof: Automotive

€ million

1,469

1,919

-23.4

Motorcycles

€ million

102

98

4.1

Financial
Services3

€ million

606

605

0.2

Other Entities

€ million

2

7

-71.4

Eliminations3

€ million

22

110

-80.0

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

2,053

2,866

-28.4

Thereof: Automotive

€ million

1,483

2,062

-28.1

Motorcycles

€ million

100

96

4.2

Financial
Services3

€ million

573

603

-5.0

Other Entities

€ million

-97

8

Eliminations3

€ million

-6

97

 

 

 

 

 

Income taxes
3

€ million

-573

-783

26.8

Net profit
3,4

€ million

1,480

2,076

-28.7

Earnings per share
2,3

 €

2.21/2.22

3.12/3.13

-29.2/-29.1

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 total practiced due to first-time application
of revised IAS 16, see note [4] to a Interim Group Financial Statement.

4 Value for 2018 includes a detriment from discontinued
operations of € 7 million

 

 

For queries, greatfully contact:

Corporate Communications

 

Max-Morten Borgmann, Corporate Communications

Telephone: +49 89 382-24118, [email protected]

 

Mathias Schmidt, Head of Corporate and Culture Communications

Telephone: +49 89 382-24544, [email protected]

 

Internet: www.press.bmwgroup.com

Email: [email protected]

 

 

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 31 prolongation and assembly
comforts in 15 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.

 

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