New sales volume and earnings records in first quarter
Profit before tax 4.4% higher at € 2.37 billion
EBIT margin of 9.4% in Automotive segment
Group net profit up by 8.2% to € 1.64 billion
BMW Group reaffirms outlook for full year 2016
Munich.
The BMW Group continued to steer a successful course at the
beginning of an important year of centenary celebrations by posting
new highs for sales volume and earnings in the first quarter of
2016.
“Our first-quarter performance is further proof of our ability
to generate positive earnings with our core business, despite a
volatile environment,” stated Harald Krüger,
Chairman of the Board of Management of BMW AG, on Tuesday. “The
decisive factor for us is not short-term profit but sustainable,
profitable growth. From this position of strength, we intend to play
a pioneering role in transforming and shaping the world of
individual mobility going forward.” The BMW Group presented its
Strategy Number ONE NEXT in March, setting
the framework for its continued commitment to drive the change of
the future mobility.
In its Automotive segment, sales volume for the
BMW Group rose by 5.9% to a total of 557,605 units (2015: 526,669
units) in the first three months of the year, thus setting a new
first quarter record.
At € 20,853 million, Group revenues for the
period from January to March were at a similar level to the previous
year (2015: € 20,917 million; -0.3%), influenced by increased sales
volume on the one hand and unfavourable currency factors (such as
the value of the British pound and the Chinese renminbi against the
euro) on the other. Profit before financial result
(EBIT) amounted to € 2,457 million (2015: € 2,521 million; -2.5%).
Group profit before tax (EBT) increased by 4.4%
to a new record level of € 2,368 million (2015: € 2,269 million).
Group net profit rose by 8.2% to € 1,641 million
(2015: € 1,516 million), also marking a new first quarter record.
Automotive segment: EBIT margin at upper end of target range
At € 18,814 million, Automotive segment
revenues were at a similar level to the previous year
(2015: € 18,893 million; -0.4%). EBIT amounted to
€ 1,763 million, also coming very close to the previous year’s
figure (2015: € 1,794 million; -1.7%). The EBIT
margin
in the Automotive segment came in at 9.4% (2015: 9.5%) and was
therefore once again in the upper half of the targeted range between
8 and 10%. Profit before tax rose by 6.1% from
€ 1,634 million to € 1,734 million.
The BMW brand set a new sales volume record, with
478,743 units (2015: 451,576 units; +6.0%) sold in the first quarter.
Tailwind came from various areas, including the contributions made by
the BMW Group’s flagship model, the BMW 7 Series, and the BMW X
models. First-quarter deliveries of the BMW 7 Series
were 20.3% ahead of the previous year. In addition the BMW 7 Series
plug-in-hybrid and the BMW M760Li xDrive will come to market this
year. Sales of the BMW X1 in the three-month period
jumped by 67.6% year-on-year to 51,002 units. The BMW
X3 recorded a 26.9% sales volume increase to 38,719 units,
and the BMW X6 was 15.2% up on the previous year
(11,043 units). Customers took delivery of 5,128 electrically powered
BMW i vehicles worldwide during the first three
months of the year, bringing the total number sold since market launch
at the end of 2013 to over 50,000 units. An additional version of the
BMW i3 with an electric range of up to 300 kilometres
in the standard cycle (NEDC) is expected to stimulate demand from
summer onwards. Even in everyday use, in bad weather conditions and
with the air conditioning or heating turned on, up to 200 kilometres
of range can be achieved on one full battery charge.
MINI
recorded a new high for deliveries to customers in a first
quarter as well, with worldwide sales 5.4% higher at 78,311 units
(2015: 74,312 units). Strong momentum came from the new MINI
Clubman, of which more than 12,000 units were sold during the
three-month period.
First-quarter sales of
Rolls-Royce Motor Cars
were affected by a number of factors, including political and
economic uncertainties, most notably in the Middle East.
Preparations for the market launch of the Dawn also had an impact.
In total, 551 units were handed over to customers during the period
under report (2015: 781 units; -29.4%). The new Rolls-Royce Dawn
made its debut at the end of March. Order intake is good and is
expected to stimulate demand.
The positive trend for the BMW Group continued in
Europe, where first-quarter sales of 257,120 units
were up 9.5% on the previous year. Numerous markets in the region
recorded sales volume growth, even on a double-digit scale in some
countries, including Great Britain (+10.5%; 59,169 units), France
(+10.7%; 20,816 units) and Italy (+11.5%; 19,951 units).
First-quarter sales of BMW Group vehicles in Asia
rose by 9.9% to 183,204 units, including 127,167 units sold on the
Chinese mainland (+10.5%) and 18,703 units in Japan (+8.8%).
Deliveries to customers in the
Americas region
decreased by 8.7% to 100,245 units, including 81,601 units
(-10.8%) sold in the USA.
Motorcycles segment sets new sales volume record
The Motorcycles segment continues to perform well. The number of
BMW motorcycles sold to customers worldwide since the beginning of
the year rose by 7.7% to 33,788 units, with the BMW R 1200 GS
long-distance enduro and its sister model, the BMW R 1200 GS
Adventure, remaining BMW Motorrad’s best-selling models. The Boxer
GS also performed well, with 11,391 units sold worldwide during the
three-month period. First-quarter segment revenues
were 2.6% higher at € 582 million (2015: € 567 million) on
the back of good sales volumes. EBIT amounted to
€ 94 million (2015: € 115 million; -18.3%), while profit
before tax also finished at € 94 million (2015: € 114
million;
-17.5%).
Financial Services segment continues to perform well
The Financial Services segment continued to perform well during
the period from January to March, setting a new first quarter
record. In total, 413,372 (2015: 384,565) new
contracts were signed in conjunction with financing and
leasing business in the first quarter, 7.5% more than in the
previous year. The number of lease and financing
contracts increased by 8.3% to a total of 4,786,441
contracts at the end of the reporting period (2015: 4,419,817
contracts).
At € 6,032 million, segment revenues were at a
similar level to the previous year (2015: € 6,058 million: -0.4%).
Segment profit before tax improved by 2.0% to € 570
million (2015: € 559 million) on the back of increased business volumes.
Workforce increased
The size of the workforce increased by 4.4%
compared with the end of the first quarter of the previous year.
Overall, the BMW Group employed a workforce of 122,692 people
worldwide at the end of the reporting period (2015: 117,554). The
BMW Group continues to recruit engineers and skilled workers in
order to keep pace with the rising demand for BMW Group vehicles,
push ahead with innovations and develop new technologies.
BMW Group reaffirms targets for full year 2016
The BMW Group remains confident in achieving its forecast
targets for the current financial year 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, intense 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 thus new record figures for
sales volume in the Automotive segment and group
profit before tax in 2016,” stated Krüger. The BMW
Group also firmly intends to remain the world’s leading premium
manufacturer of vehicles in 2016.
Automotive segment revenues
are also set to grow slightly over the year as a whole backed
by higher sales volumes. In 2016, the EBIT margin
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 in the current year. The new R
NineT Scrambler and G 310 R models unveiled at trade fairs last autumn
have given the product portfolio additional breadth and are attracting
new customer groups. A slight 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, the BMW Group forecasts
a return on equity (RoE) for the full financial
year 2016 at a similar level to the previous year (2015: 20.2%),
once again above the target rate of at least 18%.
Forecasts for the current year are based on the assumption that
worldwide economic conditions will not change significantly.
* * *
The BMW Group – an overview
1st quarter
2016
1st quarter
2015
Change in %
Sales volume
Automotive
Units
557,605
526,669
5.9
Thereof: BMW
Units
478,743
451,576
6.0
MINI
Units
78,311
74,312
5.4
Rolls-Royce
Units
551
781
-29.4
Sales volume Motorcycles
Units
33,788
31,370
7.7
Workforce 1
122,692
117,554
4.4
EBIT margin
Automotive
Segment
Percent
9.4
9.5
-0.1 %Points
Revenues
€
million
20,853
20,917
-0.3
Thereof: Automotive
€ million
18,814
18,893
-0.4
Motorcycles
€
million
582
567
2.6
Financial Services
€ million
6,032
6,058
-0.4
Other Entities
€
million
1
2
-50.0
Eliminations
€
million
-4,576
-4,603
0.6
Profit before financial result
(EBIT)
€ million
2,457
2,521
-2.5
Thereof: Automotive
€ million
1,763
1,794
-1.7
Motorcycles
€
million
94
115
-18.3
Financial Services
€ million
591
555
6.5
Other Entities
€
million
11
40
-72.5
Eliminations
€
million
-2
17
–
Profit before tax (EBT)
€ million
2,368
2,269
4.4
Thereof: Automotive
€ million
1,734
1,634
6.1
Motorcycles
€
million
94
114
-17.5
Financial Services
€ million
570
559
2.0
Other Entities
€
million
-2
-23
91.3
Eliminations
€
million
-28
-15
-86.7
Income taxes
€
million
-727
-753
3.5
Net profit
€
million
1,641
1,516
8.2
Earnings per share 2
€
2.48/2.48
2.30/2.30
7.8/7.8
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
Nikolai Glies, Head of Business and Finance Communications
Telephone: +49 89 382-24544, Telefax: +49 89 382-24418
Nikolai.Glies@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 30 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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