Categories
BMW Canada

BMW Group increases deliveries, revenues and earnings

Munich. The BMW Group available enlargement in deliveries,
revenues and gain in a third entertain and is therefore good on
a approach to achieving a targets for 2019. Group net distinction increased
during a double-digit commission rate, helped to some border by a base
outcome from a prior year’s reported figures. Moreover,
profitability has continued to urge over a march of the
nine-month period. To recompense for a high upfront output on
future-oriented technologies, a BMW Group is operative tough on
ceaselessly improving efficiency.

 

“At a nine-month stage, we are good on a approach to achieving our
targets for a year as a whole,” pronounced Oliver Zipse,
Chairman of a Board of Management of BMW AG, in Munich on Wednesday.
“However, we are looking serve into a future, carrying recognised
that inclusive technological mutation is a good opportunity
for a BMW Group. we am assured that a business indication will only
advantage from this. The car of a future, with all a integrated
digital functions, is a high-tech product of a complexity that is
still underestimated.”

 

The BMW Group sees huge intensity for a destiny purpose of the
car on a behind of these technological developments: “The
wilful mutation is holding place inside a vehicle. We are
bringing technological solutions to a highway that safeguard the
car continues to accommodate a expectations and needs of society
going forward. Areas of pivotal concentration embody digital connectivity and
formulating environmentally concordant mobility,” pronounced Zipse.

 

Significant enlargement in e-mobility – boost in upfront expenditure

 

The BMW Group is significantly expanding a operation of e-mobility
products. By 2023, a association will have 25 electrified models on the
roads – some-more than half of that will be all-electric. The pivotal to
doing is rarely stretchable car architectures and an equally
stretchable prolongation complement that enables a indication to be done as an
all-electric, a plug-in hybrid or a explosion engine chronicle to
ideally accommodate direct in any applicable marketplace segment. By 2021, demand
for electrified vehicles is approaching to double compared to 2019. The BMW
Group afterwards expects to see a high enlargement bend adult to 2025, with sales
of electrified vehicles flourishing on normal by some-more than 30% annually.

 

As a colonize in e-mobility, a BMW Group is already a leading
retailer of electrified vehicles. By a finish of 2021, a association aims
to have some-more than a million all-electric or plug-in variety on the
roads worldwide.

 

All-electric vehicles designed with increasing frequency

 

At that stage, a BMW Group will offer 5 all-electric
series-built vehicles. Alongside a BMW i3, demand
for that has increasing by approximately 20% so distant this year,
Nov will also see prolongation of a all-electric MINI* start at
a Oxford plant (UK). Over 78,000 business have duration expressed
a penetrating seductiveness in a MINI ELECTRIC*. In 2020,
prolongation of a all-electric BMW iX3 will start at
a Shenyang plant (China), followed in 2021 by the
BMW iNEXT, that will be done during the
Dingolfing plant (Germany). The BMW i4 is also due to
go into array prolongation during a Munich plant a same year.

 

In paving a approach for a destiny of mobility, a estimable turn of
upfront output was again compulsory during a duration underneath report.
Research and development losses for the
nine-month duration totalled € 4,247 million, 9.4% adult on a previous
year (€ 3,881 million). The flourishing suit of electrified vehicles
is also pushing adult costs. Exchange rate factors and rising prices for
tender materials also put downward vigour on earnings. Capital
expenditure
for property, plant and apparatus and other
unsubstantial resources during a duration from Jan to September
increasing by 14.5% to € 3,308 million (2018: € 2,889 million), mainly
in tie with stability a new indication beginning as good as the
modernisation and flexibilisation of existent plant structures.

 

Revenues and net distinction significantly adult in third quarter

 

The BMW Group set a new record for third-quarter
deliveries with a rarely appealing and rejuvenated
indication range. In total, 613,361 units of a Group’s BMW, MINI and
Rolls-Royce reward code vehicles were delivered during the
three-month duration (2018: 592,303; +3.6%). The BMW Brilliance
Automotive corner try in China continued to play a vital purpose in
this certain development. Group revenues rose to
€ 26,667 million (2018: € 24,715 million; +7.9%). Profit
before financial result
(EBIT) softened by around one third
to € 2,289 million (2018: € 1,722 million; +32.9%). In a third
entertain of a prior financial year, opening had been
significantly dampened by supply distortions and suddenly intense
foe due to a changeover to WLTP regulations as good as
aloft output for goodwill and guaranty measures. All of these
factors had contributed to a poignant decrease in distinction before
financial outcome in a third quarter, generally in a Automotive segment.

 

In 2019, third-quarter Group distinction before tax (EBT)
increasing significantly to € 2,248 million (2018: € 1,822 million;
+23.4%). The EBT margin came in during 8.4% (2018: 7.4%),
while Group net profit softened significantly to
€ 1,546 million (2018: € 1,387 million; +11.5%).

 

During a first 9 months of 2019, a BMW Group
delivered a sum of 1,866,198 units to business (2018: 1,834,810
units; +1.7%). Group revenues increasing slightly
year-on-year to € 74,844 million (2018: € 72,373 million; +3.4%).
Earnings for a nine-month duration were impacted by a sustenance of
approximately € 1.4 billion recognized in a initial entertain in
tie with a Statement of Objections perceived from a EU
Commission relating to ongoing antitrust proceedings. However, a BMW
Group has done it transparent that if required it will competition a EU
Commission’s allegations with all a authorised means during its
disposal. Profit before financial outcome (EBIT)
reported for a nine-month duration amounted to € 5,079 million,
significantly reduce than in a prior year (2018: € 7,168 million;
-29.1%). Group distinction before tax (EBT) amounted to
€ 5,063 million (2018: € 7,827 million; -35.3%), analogous to an
EBT margin of 6.8% (2018: 10.8%). The BMW Group
reported nine-month Group net profit of € 3,614
million (2018: € 5,745 million; -37.1%).

 

“The efficiency-boosting measures we have implemented are bearing
fruit: we are behaving during a high turn in comparison with our
competitors and deliberation a formidable conditions a business is
facing. Nonetheless, we aspire to grasp some-more than that,” said
Nicolas Peter, Member of a Board of Management of
BMW AG, Finance. “Upfront output in a technologies of the
destiny such as e-mobility needs to be financed. That is because we
continue to work uniformly on those matters that distortion in a own
hands and say a transparent concentration on opening and efficiency.”

 

A pivotal aspect in achieving these aims for a BMW Group is to develop
even faster digital processes and leaner structures. The
Performance NEXT beginning is approaching to
beget efficiencies in additional of 12 billion euros by a finish of
2022. Among other contributing factors, expansion times for new
car models will be reduced by as most as one third. On a product
side, adult to 50% of normal drivetrain variants
will be separated from 2021 onwards in a transition to creating
extended stretchable car architectures – in foster of additional
electrified drivetrains. It is in this area that a full impact of
these measures will come into outcome quite in a years after
2022. Moreover, a indication portfolio is frequently assessed with a view
to anticipating additional ways of reducing complexity.
Potential for larger synergy and potency in surreptitious purchasing as
good as in terms of element and prolongation costs is also being
leveraged via a Group. Furthermore, a BMW Group is
strengthening a tip line opening with new models – generally in
a high-margin segments. The association aims to double a sales volume
in a oppulance shred from 2018 to 2020.

 

EBIT domain softened in third quarter

 

Automotive shred revenues for a three-month
duration increasing to € 23,016 million (2018: € 21,111 million; +9.0%).
EBIT was significantly aloft than one year progressing during € 1,515 million
(2018: € 930 million; +62.9%), analogous to a third-quarter
EBIT margin of 6.6% (2018: 4.4%). Profit
before tax
amounted to € 1,533 million (2018: € 1,003
million; +52.8%). Free money upsurge in a Automotive shred jumped to
€ 714 million in a third entertain (2018: € 98 million).

 

At € 64,853 million, nine-month shred revenues
were somewhat adult on a prior year (2018: € 62,629 million; +3.6%).
EBIT for a nine-month period from
Jan to Sep was shabby by a sustenance (approximately
€ 1.4 billion) recognized in a initial entertain of a financial year
2019 in and with a Statement of Objections perceived from the
EU Commission relating to ongoing antitrust proceedings, and
accordingly amounted to € 2,674 million (2018: € 4,730 million;
-43.5%). The EBIT margin came in during 4.1% (2018:
7.6%). Profit before tax amounted to € 2,989 million
(2018: € 5,346 million; -44.1%).

 

BMW code sales increasing by 2.2% to 1,601,397 units
in a initial 9 months of a year (2018: 1,566,216 units). During
this period, high double-digit enlargement was available in sole by
a BMW X3 (+74.0%) and a BMW X4 (+43.4%).

 

At 261,024 units, sales of a MINI code in the
initial 9 months were somewhat down year-on-year (2018: 265,935
units; -1.8%) within an intensely rival marketplace environment.
Sales sum for a MINI Countryman for a nine-month duration went
adult by 2.6% to 73,344 units (2018: 71,490 units), since a MINI
Hatch (3 and 5 doorway models) was somewhat down year-on-year during 132,363
units (2018: 133,963 units; -1.2%).

 

Rolls-Royce continued to grow strongly in sales
volume terms, with 3,777 units delivered to business worldwide in the
initial 9 months of a year (2018: 2,659 units; +42.0%). All regions
of a universe available enlargement and postulated direct opposite a entire
operation of Rolls-Royce indication families. Sales of a Wraith, especially
a Black Badge variant, grown quite good during a period
underneath report. Customer direct for a Cullinan stays exceptionally
high, as a outcome of that a sequence book has grown steeply and now
extends good into a initial entertain of 2020. Based on this
performance, a code stays resolutely on march for a highly
successful financial 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, a association leverages a rarely stretchable production
and sales structures to even out vacillating direct between particular regions.

 

At 809,497 units, smoothness numbers in Europe during
a nine-month duration were identical to a prior year (2018: 816,037
units; -0.8%). In Germany, a region’s largest singular market, a BMW
Group available plain growth, with deliveries adult to 239,601 units
(2018: 224,933 units; +6.5%).

 

Deliveries of BMW, MINI and Rolls-Royce code vehicles in
Asia during a initial 9 months of a year
increasing to 681,773 units (2018: 638,449 units; + 6.8%). China
contributed significantly to this performance, with nine-month
deliveries of a Group’s 3 brands adult by 14.5% to a sum of
526,824 units (2018: 460.200 units).

 

In a Americas region, deliveries of 334,785 units
between Jan and Sep came tighten to relating a previous
year’s turn (2018: 336,258 units; ‑0.4%). At 261,278 units, sales
volume in a USA was also during a identical turn year-on-year (2018:
260,086 units; +0.5%).

 

Motorcycles shred reports aloft revenues and earnings

 

BMW Motorrad was means to increase
deliveries of a motorcycles and maxi-scooters in
a third entertain to 43,744 units (2018: 39,818 units; +9.9%),
ensuing in a analogous enlargement in revenues to
€ 558 million (2018: € 476 million; +17.2%). EBIT
also improved, rising to € 35 million for a three-month period
(2018: € 33 million; +6.1%). The third-quarter EBIT
margin
for a shred came in during 6.3% (2018: 6.9%).

 

Motorcycle deliveries during a first 9 months
of 2019 totalled 136,932 units (2018: 126,793 units; +8.0%),
generating revenues of € 1,871 million (2018: € 1,658
million; +12.8%). EBIT softened by 8.7% to € 226
million (2018: € 208 million), analogous to an EBIT
margin
of 12.1% (2018: 12.5%).

 

Financial Services shred continues to perform well

 

The retail patron agreement portfolio under
management
within a Financial Services
segment
grew by 3.4% to mount during 5,414,506 contracts as during 30
Sep 2019 (31 Dec 2018: 5,235,207 contracts). During the
third quarter, 504,217 (2018: 490,347 contracts;
+2.8%) new credit financing and franchise contracts were
sealed with sell customers. Revenues grew by 3.5%
to € 7,471 million (2018: € 7,219 million). Profit before
tax
for a three-month duration amounted to € 597 million
(2018: € 549 million; +8.7%).

 

In total, 1,475,504 new contracts were concluded
with business during a nine-month duration under
news (2018: 1,422,558 contracts; +3.7%). Segment
revenues increasing to € 21,981 million (2018:
€ 20,807 million; +5.6%) and profit before tax to
€ 1,797 million (2018: € 1,705 million; +5.4%).

 

Workforce during prior year’s level

 

The BMW Group’s workforce comprised 135,524
employees during 30 Sep 2019 and was therefore during a identical turn to
a finish of a prior financial year (134,682; +0.6%). The BMW Group
continues to partisan learned workers and IT specialists on a selective
basement to rivet in future-oriented projects such as digitalisation,
unconstrained pushing and electric mobility. By capitalising on natural
fluctuation trends, a aim for a year as a whole is to maintain
workforce numbers during a prior year’s level.

 

BMW Group reaffirms targets for stream financial year

 

The BMW Group sets itself desirous targets, even in times of
domestic and mercantile uncertainty. With a young product
portfolio
, serve rejuvenated with a introduction of new
models, a Group intends to sojourn a world’s heading automotive
manufacturer in a reward segment.

 

The BMW Group is again investing almost in new technologies
and a mobility of a destiny in 2019. Costs are also being driven up
in other areas, including a significantly aloft cost of complying
with stricter CO glimmer legislation. Against this background,
rising prolongation costs are approaching to have a
dampening outcome on earnings. Currency factors and tender materials
prices will also have a 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 enlargement 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 set aim for a BMW Group. However, a ability to
change underlying conditions is limited. Excluding a impact of
a € 1.4 billion sustenance recognized in tie with ongoing
antitrust proceedings, a aim operation for a EBIT domain remains
unvaried during 6 to 8%. Since a sustenance has a disastrous impact on the
EBIT margin, a BMW Group is awaiting a domain between 4.5 and 6.5%
in a Automotive shred for 2019.

 

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 a
return on equity during a prior year’s turn and
so above a aim of 14%.

 

In further 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 result. 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 enlargement 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 and
raise a leading role in a automotive industry.

 

* * *

 

The BMW Group – an overview

Jan. – Sept.
2019

Jan. – Sept.
2018

Change in %

Deliveries to customers

    

Automotive

units

1,866,198

1,834,810

1.7

thereof: BMW

units

1,601,397

1,566,216

2.2

 MINI

units

261,024

265,935

-1.8

 Rolls-Royce

units

3,777

2,659

42.0

Motorcycles

units

136,932

126,793

8.0

 

 

 

 

 

Workforce
1              (compared to 31 December
2018)

135,524

134,682

0.6

 

 

 

 

 

Automotive
shred EBIT margin

%

4.1

7.6

-3.5 % points

Motorcycles
shred EBIT margin

%

12.1

12.5

-0.4 % points

EBT domain BMW Group
3

%

6.8

10.8

-4.0 % points

 

 

 

 

 

Revenues
3

€ million

74,844

72,373

3.4

thereof: Automotive

€ million

64,853

62,629

3.6

Motorcycles

€ million

1,871

1,658

12.8

Financial
Services3

€ million

21,981

20,807

5.6

Other Entities

€ million

4

4

Eliminations3

€ million

-13,865

-12,725

-9.0

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

5,079

7,168

-29.1

thereof: Automotive

€ million

2,674

4,730

-43.5

Motorcycles

€ million

226

208

8.7

Financial
Services3

€ million

1,860

1,694

9.8

Other Entities

€ million

7

22

-68.2

Eliminations3

€ million

312

514

-39.3

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

5,063

7,827

-35.3

thereof: Automotive

€ million

2,989

5,346

-44.1

Motorcycles

€ million

222

205

8.3

Financial
Services3

€ million

1,797

1,705

5.4

Other Entities

€ million

-181

105

Eliminations3

€ million

236

466

-49.4

 

 

 

 

 

Income taxes
3

€ million

-1,493

-2,060

27.5

Net profit
3,4

€ million

3,614

5,745

-37.1

Earnings per share
2,3

 €

5.37/5.38

8.62/8.63

-37.7/-37.7

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 4 to a Interim Group Financial
Statements for a duration finished 30 Jun 2019.

4 Value for 2018 includes a detriment from discontinued
operations of € 22 million; value for 2019 includes a detriment from
dropped operations of € 44 million.

 

 

The BMW Group – an overview

3rd quarter
2019

3rd entertain
2018

Change in %

Deliveries to customers

    

Automotive

units

613,361

592,303

3.6

thereof: BMW

units

525,438

506,920

3.7

 MINI

units

86,680

84,505

2.6

 Rolls-Royce

units

1,243

878

41.6

Motorcycles

units

43,744

39,818

9.9

 

 

 

 

 

Workforce
1              compared to 31 December
2018)

135,524

134,682

0.6

 

 

 

 

 

Automotive
shred EBIT margin

%

6.6

4.4

+2.2 % points

Motorcycles
shred EBIT margin

%

6.3

6.9

-0.6 % points

EBT domain BMW Group
3

%

8.4

7.4

+1.0 % points

 

 

 

 

 

Revenues
3

€ million

26,667

24,715

7.9

thereof: Automotive

€ million

23,016

21,111

9.0

Motorcycles

€ million

558

476

17.2

Financial
Services3

€ million

7,471

7,219

3.5

Other Entities

€ million

1

1

Eliminations3

€ million

-4,379

-4,092

-7.0

 

 

 

 

 

Profit before financial outcome (EBIT)
3

€ million

2,289

1,722

32.9

thereof: Automotive

€ million

1,515

930

62.9

Motorcycles

€ million

35

33

6.1

Financial
Services3

€ million

606

528

14.8

Other Entities

€ million

1

6

-83.3

Eliminations3

€ million

132

225

-41.3

 

 

 

 

 

Profit before taxation (EBT)
3

€ million

2,248

1,822

23.4

thereof: Automotive

€ million

1,533

1,003

52.8

Motorcycles

€ million

35

31

12.9

Financial
Services3

€ million

597

549

8.7

Other Entities

€ million

-26

27

Eliminations3

€ million

109

212

-48.6

 

 

 

 

 

Income taxes
3

€ million

-702

-420

-67.1

Net profit
3,4

€ million

1,546

1,387

11.5

Earnings per share
2,3

 €

2.31/2.31

2.07/2.07

11.6/11.6

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 4 to a Interim Group Financial
Statements for a duration finished 30 Jun 2019.

4 Value for 2018 includes a detriment from discontinued
operations of € 15 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. Ecological and amicable sustainability
along a whole value-added chain, full shortcoming for our
products and an undeniable joining to preserving resources are
primary objectives resolutely embedded in a corporate strategy.

 

www.bmwgroup.com

Facebook: http://www.facebook.com/BMWGroup

Twitter: http://twitter.com/BMWGroup

YouTube: http://www.youtube.com/BMWGroupView

Instagram: https://www.instagram.com/bmwgroup

LinkedIn: https://www.linkedin.com/company/bmwgroup/