BMW Q1 results

[chiba]

BMW Group released its Q1 results today. When it came to motorcycles:

"The Motorcycles segment had a successful start to the year, delivering 35,636 motorcycles and maxi-scooters (2016: 33,788 units) to customers during the first quarter, 5.5% up on the previous year. Revenues grew by 7.0% to € 623 million (2016: € 582 million). Higher volumes and positive sales-mix factors helped segment profit before financial result to jump by 33.0% to € 125 million (2016: € 94 million). Influenced by seasonal factors at the start of the motorcycle season, the segment EBIT margin came in at 20.1% (2016: 16.2%). Profit before tax also improved by 33.0% to € 125 million (2016: € 94 million)."

At today's exchange rate, €623 million is $680 million, and €125 million is $136 million.

 

[pglaves]

BMW Group released its Q1 results today. When it came to motorcycles:

"The Motorcycles segment had a successful start to the year, delivering 35,636 motorcycles and maxi-scooters (2016: 33,788 units) to customers during the first quarter, 5.5% up on the previous year. Revenues grew by 7.0% to € 623 million (2016: € 582 million). Higher volumes and positive sales-mix factors helped segment profit before financial result to jump by 33.0% to € 125 million (2016: € 94 million). Influenced by seasonal factors at the start of the motorcycle season, the segment EBIT margin came in at 20.1% (2016: 16.2%). Profit before tax also improved by 33.0% to € 125 million (2016: € 94 million)."

At today's exchange rate, €623 million is $68 million, and €125 million is $136 million.

Meanwhile, here on the BMW MOA Forum we continue to read the opinions that BMW doesn't know what they are doing and other considerable criticism. It is remarkable how much the average old guy doesn't know about running a global corporation.

 

[chiba]

I fixed a typo in the original post - it should have been $680 million, not $68 million. Sorry about that.

From other material from BMW:

During a shareholder conference call, Chairman of the Board of Management of BMW AG Harald Krüger said, "We inspire our customers. We are launching the biggest model offensive in our company’s history. This year alone, we will launch more than 20 new and revised car models; with another 20 to follow next year. There will also be 14 new BMW Motorrad models this year. Our customers will be able to choose between a wide range of different drive trains."

-and-

During the conference call, Member of the Board of Management of BMW AG (Finance) Dr. Nicolas Peter, said, "I would now like to talk about our Motorcycles Segment. Right on time for the start of the new season, our current product range, which includes many new models, has been very well received by our customers. In the first three months of 2017, BMW Motorrad sold more than 35,000 motorcycles – 5.5% more than last year’s record figure. This March saw our entry into the segment below 500 cc with the G 310 R. The long-distance enduro R 1200 GS has been thoroughly redesigned and was also successfully launched in March. With the new R NineT Pure and the R NineT Racer we have extended our popular heritage family to four models. They will be joined by a fifth model, the R NineT Urban G/S, from June. Segment revenues also rose in line with deliveries, climbing 7.0% to 623 million euros. EBIT rose to 125 million euros, benefitting from higher volumes and positive mix effects. This was an increase of 33.0% over last year. Due to seasonal factors, the first-quarter EBIT margin stood at 20.1%. This is an increase of almost four percentage points over the same period of last year."

 

[greenwald]

BMW knows exactly what they're doing. They will always enjoy record sales of their products, despite the premium prices, as long as they continue to convince the consumer that they offer state-of-the-art, indestructible motorcycles, a reputation a bit out of date.

No surprises in the quarterly report at all.

 

[BC1100S]

BMW knows exactly....as long as they continue to convince the consumer that they offer state-of-the-art, indestructible motorcycles, a reputation a bit out of date.

I probably missed an ad campaign or two but I'm not sure that BMW pushes the "indestructible motorcycle" thing much, if at all, these days. What I DO see is people on this board and folks that I know racking up huge mileage. Perhaps its just that BMW attracts more distance riders than posers. (not saying you're a poser, Mr. Greenwald )

As far as state-of-the-art is concerned, I think ALL motorcycles are state-of-the-art now.

 

[greenwald]

I probably missed an ad campaign or two but I'm not sure that BMW pushes the "indestructible motorcycle" thing much, if at all, these days. What I DO see is people on this board and folks that I know racking up huge mileage. Perhaps its just that BMW attracts more distance riders than posers. (not saying you're a poser, Mr. Greenwald )

As far as state-of-the-art is concerned, I think ALL motorcycles are state-of-the-art now.

Ahhhh ........... but you didn't say I wasn't a poser!

Relax - far more difficult to insult me than one might think. Nothing taken personally, even if intended.

BMW still markets its products as "ultimate driving/riding machines," and the durability implication is palpable.

As for all motorcycles being 'state-of-the-art,' you need to spend some time on the H-D Street 500/750 or the Hyosung models.

 

[pglaves]

... you need to spend some time on the H-D Street 500/750 or the Hyosung models.

I thought we were talking about real motorcycles.

 

[greenwald]

I thought we were talking about real motorcycles.

I had to slip those two models in, Paul, to try and make a point.

 

[mika]

The rolled up numbers for motorcycle deliveries are up 5.5 percent corporate wide. The staff and heads of BMW USA and BMW Canada Motorcycle segments might feel a bit uncomfortable about the that number from where they are seated. When you dig into the report sales volume in the USA dropped moderately to 2,866 units (2016: 3,022 unit; –5.2%). In their April 2017 PressClub sales release, BMW Motorrad Canada reported April saleshttps://www.press.bmwgroup.com/cana...-group-canada-reports-april-sales?language=en of 287 units, an increase of +10.4% compared to April, 2016. On the year, a total of 602 motorcycles have been sold representing a decrease of -4.6% over the same period last year. The April sales give a glimmer of hope; however, in both countries 2016 was a already down year, in the range of 2012 (IIRC).

 

[BC1100S]

As for all motorcycles being 'state-of-the-art,' you need to spend some time on the H-D Street 500/750 or the Hyosung models.

OK, I will concede that point with no attempt at a defense.

I should have said...."I consider motorcycles manufactured by Honda, Kawasaki, Suzuki, Yamaha, BMW, Triumph, and Ducati to be state-of-the-art."

That's certain to get someone stirred up.

 

[AKsuited]

When you dig into the report sales volume in the USA dropped moderately to 2,866 units (2016: 3,022 unit; –5.2%).

Car sales are down pretty much across the board, so it isn't just BMW bikes: http://www.chicagotribune.com/class...les-plummet-autotips-0406-20170404-story.html

Harry

 

[mika]

Car sales are down pretty much across the board, so it isn't just BMW bikes: http://www.chicagotribune.com/class...les-plummet-autotips-0406-20170404-story.html

Harry

Agreed.

The difference I see is when this down turn started in North America and the depth. The auto side had been building through much of 2016 and started slowing down in Q4. The motorcycle in North America started a similar trend. With a soft Q4, 2015 was a record year for many including BMW. 2016 started with a thud. January came in at a -31% and they went down from their until some time in the summer. May was the last time they reported sales and then they were down 40+% y-t-d. 2016 came in just ahead of 2012. Now they are behind that trend.

Overall the US market is seen as soft at best. The growth in the international market has been solid. South America is a standout for many.