Morning Reads: 2 August 2007

[mika]

Today’s Birthdays / Calendar

35W Bridge Collapse in Minneapolis Coverage

startribune.com

twincities.com

twincities.com: Photo Gallery

Minnesota.publicradio.org

wcco.com: CBS
kare11.com: NBC
myfoxtwincities.com: FOX
kstp.com: ABC

BMW in the News

MCM reports that BMW’s 450 will be in dealers showrooms next year.
motorcyclenews.com – Video: BMW’s 450 enduro in action

ft.com
BMW considers low-emission supermini

Guess I missed this one in the FT.com -
wheels24.co.za
BMW plots ‘mini’ MINI

motorcycleusa.com
BMW & Brown Feasting on Asphalt Again…I knew that!

TED: Ideas worth spreading

TED stands for Technology, Entertainment, Design. It started out (in 1984) as a conference bringing together people from those three worlds. Since then its scope has become ever broader.

TED will have a permanent link in the Morning Reads. BMW is a TED sponsor. That could be reason enough to include a link, but the diversity and quality of the content is what I think makes it worthwhile for your reading consideration and exploration. The inclusion is not to pander to BMW to curry favor or to proselytize for a certain point of view. The intention of including this is to challenge us to think.

A big thank you to Henzilla (Steve Henson), and the other unnamed member who sent it to him, for the following link: Jaw-dropping Photosyth demo. It is an excellent example of what is available for your consideration on this site.


Page 2:
BMW Press: News and press releases from the official BMW sources

BMW PressClubs are full of reports of the Interim Report June 2007, and statements by Dr. Reithofer and Stefan Krause. A link to the Investor Relations site and a downloadable PDF of the report may be found in the BMW Group section of Page 2.



News:

Bikes in the Fast Lane
Dainese buys AGV

londonbikers.com
Guzzi World Days

gizmag.com
High-tech motorcycle training systems puts learner skills under the microscope

Dealernews.com
Honda’s Q1 cycle sales fall 5.3%

roadracingworld.com
New MV and Benelli Dealer in New York

Nutritional labels for kegs?
newsday.com
U.S. May require detailed alcohol labels.

engadget.com
Teen engineers create eco-minded electric unicycle

ft.com
Russians to plant flag on N Pole seabed

Free Tires!!! Now that I have your attention…
womenridersnow.com
Dunlop Offers Free Tires To Young Riders
Two classes At AMA Amateur National Championships are recipients

The mind reels think what the forum would do with this.
boingboing.net
Chinese game lets you execute corrupt officials.


Iron Butt Rally 2007

About the IBA
The Iron Butt Association is dedicated to safe, long-distance, endurance motorcycle riding. Although based in the United States, we have over 24,000+ members world-wide. One of our more popular slogans is, "The World Is Our Playground."
We host several rides, the most notable being the 11-day, 11,000+ mile Iron Butt Rally[tm]. Additionally, the Iron Butt Association hosts the Saddle Sore 1000[tm] (a 24 hour 1,000 mile ride), the Bun Burner 1500[tm] (1,500 miles in 36 hours), the Bun Burner Gold[tm] (1,500 miles in 24 hours), the 50cc Quest[tm] (Cross Country in 50 hours or Less), the National Parks Tour Master Traveler Award[tm] (visit 50 parks in at least 25 states), the coveted 10/10ths Challenge[tm] (10 consecutive 1,000 mile days) and the almost-impossible to get into 100K Club[tm] (100,000 miles or more in one year).
The Iron Butt Association (IBA) does not have membership in the traditional sense. We do not have yearly dues, formal meetings or a monthly newsletter. The IBA is a little more loose knit organization than most clubs. Generally speaking there are several ways to earn membership. The most notable is to be a finisher of the Iron Butt Rally or a successful finisher of one of the other rides we sponsor, such as the Saddle Sore 1000. Rally workers and supporters are also granted membership status.
The Iron Butt Association publishes several documents about the Iron Butt Rally and Long-Distance Endurance Riding, including our hottest title, the "Archive of Wisdom", which contains a list of Long Distance Riding tips from our most seasoned, veteran riders.
We also maintain an e-mail list that will deliver Iron Butt information as it becomes available. Please note that this is not a high-volume mail list. Mailings are typically made once a month. To get on the list, e-mail your request to ibanews@ironbutt.com. Anywhere in the body of your message, enter the following:
subscribe ironbuttnews
and on the next line, place your First Name, Last Name and e-mail address for example:
Mike Jones mkjones@cyclerider.com
For additional information, contact Iron Butt Association President, Michael Kneebone.

The 2007 Iron Butt Rally will take off on Monday, August 20, 2007
from the St. Louis, Missouri area. Once again, it will be a challenge
not only to riding skills but also the riders ability to map a
successful route in order to maximize points and solve the
time/distance equation.
Iron Butt.org:
Website
Forum
SaddleSore Website

Iron Butt Rally in the News:
Morning Reads attempt to give you ways for you to follow the event and fill in some of the background for the unfamiliar.


Bike Reviews:

motorcycle.com
2008 Can-Am Spyder Test
A Malange a Trois


Blog Update

Foriegn Language Blogs


Over Heard in New York | Voice of the City


Photography / Video:

Do I need to get a model release when photographing people?
dPS.co
Model Releases- A Primer

dPS.com
Digital photography tips from around the web – July 2007

Crusader Rabbit: Episode 14

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Wonderings:

Today’s news, from and about BMW, focuses on the Interim Report 2007. For the Motorrad fan this snip sums it up.

Motorcycle segment earnings unchanged

The sales volume of the Motorcycle segment for the period from April to June fell by 2.3% to 36,201 units (second quarter 2006: 37,052 units), mainly due to pre-seasonal buying at the beginning of the year caused in particular by the mild winter. On a six-month basis, the number of motorcycles sold rose by 5.6% to a new record of 59,230 units (first half-year 2006: 56,103 units). Second-quarter revenues fell by 5.5% to euro 396 million (second quarter 2006: euro 419 million), whilst the segment profit before tax, at euro 56 million, was unchanged compared to the second quarter last year.

Things are unchanged for the first six months when compared to 2006 which was a record year for the Motorrad division. Great we can all shut our computers off and go riding secure in the knowledge BMW is on track for another record year, or is it?

But BMW’s bike sales are up for the first six months you say.

True enough but that figure is front end loaded. Sales were up strongly in Q1 and slowed for Q2 with the entire period being up. As this has happened many markets have been impacted by changes in the dollar-euros-yen mix. Sales are slowing across many manufacturers lines.

To add to the decline in sales we are anticipating new models from BMW. The 450, a F800GS, and if MCN is correct a very high speed K1000 for street homologation and WSBK on the track. These models in theory will attract new customers, yet there are existing owners that BMW expects to recycle (pun intended) this that will wait for these new models.

We can over analyze what has happened and loose site of what the plan is. The recurring theme by the corporate leaders is the focus is on a long term strategy. This is witnessed by things previously reported. The China strategy with Loncin may hold a key to increasing parts cost if quality issues can be dealt with. The purchase of Husqvarna is a short term expense but increase production capacity and potential product range.

Reading BMW’s reports and all of the analysis that I have read leaves me expecting the remainder of 2007 to be rocky for BMW but the longer term horizon looks good, with one nagging doubt.

In the Bloomberg Report offered elsewhere in the Morning Reads the closing section reads:

Supply, Currency Costs
Increasing prices for raw materials, including steel and rubber, as well as a rising euro will hamper earnings this year, after additional costs reached about 1 billion euros in 2006, BMW said today, adding that the burden will be greater than first anticipated. The company, whose largest national market is the U.S., is partly protected with hedging contracts against a declining dollar.
Exchange-rate effects on 2007 profit won't exceed last year's and raw-material price effects will be about the same as in 2006, Krause said.
The euro has risen 6.6 percent against the dollar over the past 12 months. It rose 6 percent in the quarter against the yen and has surged 10 percent over the past year.
The carmaker is fully hedged for currency shifts this year and has begun to protect itself for 2008, Krause said. BMW is sticking with a hedging strategy that anticipates parity between the dollar and the euro over the long term, he said.
``BMW is still suffering from the weak dollar and yen,'' said Juergen Meyer, who helps manage 1.3 billion euros of assets at SEB Asset Management in Frankfurt. ``One can see that from the numbers today.'' The carmaker sells about 16,000 vehicles each quarter in Japan, an important market for the company, he added.
My doubt raises from the next the last paragraph of the Bloomberg article. All of BMW’s planning is based on anticipated parity between the dollar and the euro over the long term. The plans seem reasonable. I wonder are they built on a foundation made of a bad assumption.

As always this wondering and a buck will get us a small coffee and change at the Lilydale gas station.


Today’s RoadFood.com


Woot

Todays Woot

The Blog


xkcd A webcomic of Romance, Sarcasm, Math and Language



Bike Candy:

Nate Kern’s race bike is today’s morsel of Bike Candy.

Nate was more than willing to talk with all with questions.

He told war stories about the various scratches on his bike and his body.

And explained that additional cooling was the reason the rear protective boot was left off.

If only my Roadster created enough power to need an exhaust like this

Then suddenly Nate turned on the crowd forcing one young fan to sit on the bike. Then Nate made his father take photos of the young fan while Nate stood next to him manically grinning.

THE HORROR OF IT ALL, I was very, very jealous.


THE END

 

[mika]

Page 2

BMW Press: News and press releases from the official BMW sources

BMW Group

BMW Group remains on course in second quarter

Motorcycle segment earnings unchanged

The sales volume of the Motorcycle segment for the period from April to June fell by 2.3% to 36,201 units (second quarter 2006: 37,052 units), mainly due to pre-seasonal buying at the beginning of the year caused in particular by the mild winter. On a six-month basis, the number of motorcycles sold rose by 5.6% to a new record of 59,230 units (first half-year 2006: 56,103 units). Second-quarter revenues fell by 5.5% to euro 396 million (second quarter 2006: euro 419 million), whilst the segment profit before tax, at euro 56 million, was unchanged compared to the second quarter last year.

A PDF download of the Interim Report 2007 is available from BMW Group IR Services.


World of BMW News

Get off the beaten track fro real adventure


BMW GroupPress Club:

PressClub Asia

BMW Group remains on course in second quarter

Earnings and sales volume targets for full year confirmed
Adverse impact from exchange rate effects and start-up costs

PressClub Australia

BMW HYDROGEN 7 CONQUERS THE ROAD

Prominent pioneers in the United Kingdom, Germany, the United States, China and France have already racked up more than two million km in a fleet of BMW Hydrogen 7 limousines. Drawn from the world of politics, business and the Arts, the pioneers are the first to experience the full integration of hydrogen technology with typical BMW driving dynamics.

PressClub Austria

BMW Group liegt im zweiten Quartal im Plan.


PressClub Italy

Il BMW Group fa registrare andamenti positivi nel secondo trimester


PressClub Netherlands

Half jaarcijfers per 30 Juni 2007

BMW Group blijft op koers in tweede kwartaal


PressClub UK

BMW Group remains on course in second quarter

Earnings and sales volume targets for full year confirmed
Adverse impact from exchange rate effects and start-up costs


Munich. The BMW Group remained on course in the second quarter despite the adverse impact of on-going currency effects on the one hand and market launch and production start-up costs for new models on the other. The total number of BMW, MINI and Rolls-Royce brand cars delivered to customers rose by 8.6% to a new record figure of 397,009 units (second quarter 2006: 365,547 units). Group revenues climbed by 11.3% to euro 14,683 million (second quarter 2006: euro 13,193 million).

Group earnings for the period from April to June were held down more than expected as a result of the on-going weakness of the US dollar and Japanese yen and higher raw material costs. In addition, launch costs for new models and substantial expenditure for the development of even more efficient and fuel-saving engines were incurred. "Thanks to the increased use of Efficient Dynamics technology, approximately 40% of BMW and MINI brand cars sold in Europe, will, from autumn onwards, emit a maximum of 140g CO2/km", stated Norbert Reithofer, Chairman of BMW AG's Board of Management in Munich on Wednesday. The profit before tax fell by 13.6% to euro 1,065 million (second quarter 2006: euro 1,232 million). The net profit was euro 753 million (second quarter 2006: euro 787 million/-4.3%) and earnings per share of common stock amounted to euro 1.15 (second quarter 2006: euro 1.20).

Revenues for the six-month period rose by 7.3% to euro 26,634 million (first half-year 2006: euro 24,811 million). The profit before tax amounted to euro 1,917 million (first half-year 2006: euro 2,528/-24.2%). It should be noted that the previous year's figure includes a one-off book gain of euro 375 million from the partial settlement of the exchangeable bond on shares in the British aero engine manufacturer, Rolls-Royce plc. Excluding this exceptional item, the profit before tax would have decreased by only 13.4%.

Impact of adverse currency effects in 2007 higher than expected

Although conditions remain difficult in some aspects, the BMW Group nevertheless expects to make good progress over the coming months. In particular, adverse currency effects are having a greater impact on earnings than previously forecast. However, based on the BMW Group's current assessment, the negative impact will not exceed the previous year's level.

Reithofer reaffirmed the company's outlook for the current financial year: "We are still aiming to achieve a pre-tax profit that, adjusted for the one-off gain on the Rolls-Royce exchangeable bond, is above the record level posted for the previous year. The company is heading towards a sales volume growth rate in the high single-digit percentage range and a sales volume of over 1.4 million vehicles", he added. All three brands are forecast to achieve new sales volume records.

Slight increase in workforce

The BMW Group had a worldwide workforce of 107,079 employees at the end of the second quarter 2007, 0.9% more than one year earlier (106,150 employees).

Further additions to model range

The BMW Group introduced two new models onto the markets in the period from April to June in the form of the BMW M5 Touring and the three-door version of the BMW 1 Series. The previously announced 1 Series Coup?® will strengthen this model from autumn onwards. The fourth generation of the BMW M3 will commence sales in September. As for the MINI brand, the MINI One and the MINI Cooper D have been available on the market since April 2007. The MINI Clubman will be launched in autumn.

Position as the world's leading premium manufacturer maintained

The BMW Group sold more cars on a quarterly and half-year basis than ever before, thus asserting its position as the world's leading premium manufacturer. For the six-month period, the number of cars delivered increased by 4.6% to 730,285 units (first half-year 2006: 698,470 units); for the first time, therefore, more than 700,000 cars were sold during a six-month period.

The number of BMW brand cars sold in the six-month period went up by 4.2% to 622,415 units (first half-year 2006: 597,120 units). The sales volume for the period from April to June rose by 7.1% to 336,230 units (second quarter 2006: 313,823 units). The main impetus for this growth was driven again by the BMW 3 Series, the sales volume of which rose by 13.3% to 288,256 units (first half-year 2006: 254,338 units).

The MINI achieved a positive level of sales, with the second-quarter sales volume rising by 17.6% to 60,598 units (second quarter 2006: 51,544 units). This performance represents a new high level for a single quarter. The sales volume for the six-month period rose by 6.4% to 107,576 units (first half-year 2006: 101,063 units). The new MINI has been available on all major markets since March and the MINI brand continues to generate a very high-value product mix. Some 12.5% of buyers decided to purchase the MINI One, compared to 56.8% going for the MINI Cooper and 30.7% for the MINI Cooper S.

The sales volume of the Rolls-Royce brand was similar to the previous year, with 294 Phantoms handed over to customers during the six-month period (first half-year 2006: 287 units /+2.4%).

Automobile segment affected by adverse exchange rate factors

The number of cars sold by the Automobile segment accelerated in the second quarter. Segment earnings were again adversely affected by the exchange rate effects and higher raw material prices referred to above. Further factors were production start-up and market launch costs for new models as well as the higher level of depreciation and research and development costs. Segment revenues for the period from April to June increased by 10.2% to euro 14,257 million (second quarter 2006: euro 12,943 million). The profit before tax fell by 15.4% to euro 801 million (second quarter 2006: euro 947 million).

Motorcycle segment earnings unchanged

The sales volume of the Motorcycle segment for the period from April to June fell by 2.3% to 36,201 units (second quarter 2006: 37,052 units), mainly due to pre-seasonal buying at the beginning of the year caused in particular by the mild winter. On a six-month basis, the number of motorcycles sold rose by 5.6% to a new record of 59,230 units (first half-year 2006: 56,103 units). Second-quarter revenues fell by 5.5% to euro 396 million (second quarter 2006: euro 419 million), whilst the segment profit before tax, at euro 56 million, was unchanged compared to the second quarter last year.

Financial services business remains on growth course

The Financial Services segment continued to perform well in the second quarter 2007. The profit before tax rose by 5.0% to euro 189 million (second quarter 2006: euro 180 million). The business volume of the segment in balance sheet terms went up by 17.8% to reach euro 48,811 million at 30 June 2007. The number of lease and financing contracts in place with dealers and retail customers at the end of the six-month period increased by 14.0% to 2,485,450 contracts. The proportion of new cars of the BMW Group leased or financed by the Financial Services segment during the first half of the year was 44.0%; this was 1.9 percentage points above the proportion recorded for the corresponding period in 2006.
* * *
The full Interim Report to 30 June 2007 is available for download at www.bmwgroup.com/ir.

The BMW Group - an Overview
2nd quarter
2007
2nd quarter 2006
Change
in %
Vehicle production
Automobiles units 406,659 355,072 14.5
Motorcycles units 32,772 31,531 3.9

Deliveries to customers
Automobiles units 397,009 365,547 8.6
Thereof:
BMW units 336,230 313,823 7.1
MINI units 60,598 51,544 17.6
Rolls-Royce units 181 180 0.6
Motorcycles units 36,201 37,052 -2.3

Workforce at end of quarter 107,079 106,150 0.9

Operating cash flow euro million 1,545 2,522 -38.7

Revenues euro million 14,683 13,193 11.3
Thereof:
Automobiles euro million 14,257 12,943 10.2
Motorcycles euro million 396 419 -5.5
Financial Services euro million 3,449 2,869 20.2
Reconciliations euro million -3,419 -3,038 -

Profit before tax euro million 1,065 1,232 -13.6
Thereof:
Automobiles euro million 801 947 -15.4
Motorcycles euro million 56 56 -
Financial Services euro million 189 180 5.0
Reconciliations euro million 19 49 -61.2
Income taxes euro million -312 -445 -29.9
Net profit euro million 753 787 -4.3
Earnings per share2 euro 1.15/1.16 1.20/1.21 -4.2/-4.1

January to
June 2007
January to
June 2006
Change
in %
Vehicle production
Automobiles units 788,678 699,806 12.7
Motorcycles units 68,567 61,071 12.3

Deliveries to customers
Automobiles units 730,285 698,470 4.6
Thereof:
BMW units 622,415 597,120 4.2
MINI units 107,576 101,063 6.4
Rolls-Royce units 294 287 2.4
Motorcycles units 59,230 56,103 5.6

Workforce at end of quarter 107,079 106,150 0.9

Operating cash flow euro million 2,798 3,743 -25.2

Revenues euro million 26,634 24,811 7.3
Thereof:
Automobiles euro million 25,675 24,174 6.2
Motorcycles euro million 763 732 4.2
Financial Services euro million 6,532 5,607 16.5
Reconciliations euro million -6,336 -5,702 -

Profit before tax euro million 1,917 2,528 -24.2
Thereof:
Automobiles euro million 1,410 1,708 -17.4
Motorcycles euro million 90 85 5.9
Financial Services euro million 372 353 5.4
Reconciliations euro million 45 382 -88.2
Income taxes euro million -577 -793 -27.2
Net profit euro million 1,340 1,735 -22.8
Earnings per share euro 2.05/2.06 2.64/2.65 -22.3/-22.3

 

[mika]

Statement by Dr Norbert Reithofer, Chairman of the Board of Management of BMW AG, Telephone Conference Interim Report as of 30 June, 2007

Statement by
Dr Norbert Reithofer
Chairman of the Board of Management of BMW AG Conference Call on the Interim Report as of June 30, 2007
1 August 2007


Ladies and Gentlemen,

Good afternoon and welcome to our second conference call of the year.

Today, we will present the group accounts for the second quarter of 2007 as well as the results for the first half of the year.

In a nutshell:

ÔÇó First: the BMW Group was right on track during the first six months of the year concerning business development.
ÔÇó Second: we are confident that the successful business trend will continue throughout the second half of the year.
ÔÇó Third: Given this development, we confirm our forecast for the business year 2007:

o We expect group retail to rise by a high single-digit percentage ÔÇô to a total of over 1.4 million cars.
o Furthermore, we intend to show group profit before tax exceeding last yearÔÇÖs level ÔÇô adjusted for the one-off effect from the Rolls-Royce exchangeable bond in 2006.

We plan to achieve these goals despite unexpectedly high additional burdens arising from currency effects and raw material prices. We will continue to strengthen our measures to further enhance efficiency and effectiveness within the BMW Group. We had previously talked of opportunities that would enhance earnings growth even further. These opportunities have now completely vanished due to the latest adverse currency factors and rising raw-material costs.

Where does the BMW Group stand, following the first six months of this year?

ÔÇó Concerning automobile retail, the BMW Group remains the worldÔÇÖs most successful premium car manufacturer. You have already been informed about our sales figures. As previously announced, development picked up pace in the second quarter. Compared to the first six months of 2006, group retail grew by 4.6 percent to more than 730,000 units.
ÔÇó Our motorcycle business reached a new all-time high in the first six months of the year, selling more than 59,000 motorcycles ÔÇô 5.6 percent up on last yearÔÇÖs figure.
ÔÇó Our financial services business increased the number of lease and financing contracts with end customers and dealerships by 14 percent compared to the first half of the year 2006. Financial Services now handles close to 2.5 million contracts.


As of June 30, 2007, the BMW Group employed a global workforce of about 107,000 people or 0.9 percent more than a year earlier.

A few remarks about revenues and earnings:

ÔÇó Our revenues reflected the positive development of our retail volume. For the first six months of the year, we posted group revenues of over 26.6 billion Euros. This is an increase of 7.3 percent over the previous year.
ÔÇó Profit before tax for the first half of the year was at more than 1.9 billion Euros, down 24.2 percent year-on-year. But as you all know, our result for the first six months of 2006 included a book gain from the Rolls-Royce exchangeable bond. Adjusted for this one-off effect, as well as the change in market value of the respective option obligations, the decrease for the first two quarters of 2007 was 13.4 percent.

Ladies and Gentlemen,

The BMW Group is currently implementing a massive product initiative.

In the first quarter of this year alone, the BMW launched many new models, for example: the new BMW X5, the new BMW 3 Series Convertible as well as the model updates on the 1 and 5 Series.

Such a product initiative of this scope requires an enormous amount of expenditures. These lead to higher research and development costs, as well as above-average launch and marketing expenses.

Of course, we continually strive to offset these costs by increasing our efforts in implementing further efficiency measures throughout the group. This continues to set us apart from our competitors.

Without new models there can be no growth. Our model initiative is an investment in the company and also guarantees future growth.

These tremendous efforts are generating gains. The development of our retail figures in the second quarter is proof of this. You may remember what I said at the Annual Press Conference in March: The newly introduced BMW and MINI models would make retail rise by over 50,000 additional units from the first to the second quarter.

In fact, we delivered close to 64,000 units more to our customers in the second quarter of 2007.

This underlines the appeal our new models really have for our customers. And these models have thus become key growth drivers. This is the foundation for our successful business development.

We continued our product initiative during the second quarter: BMW introduced the new three-door variant of the 1 Series and the new BMW M5 Touring while MINI presented the new MINI One and Cooper D.

Following the Frankfurt Motor Show in September, we are going to launch the BMW 1 Series Coup?® and the new BMW M3 Coupe.

Next in line are the updated BMW 6 Series Coup?® and Convertible. For the first time ever, a model in this segment is going to be available with a diesel engine.

And there will also be a completely new MINI model ÔÇô the MINI Clubman. At Rolls-Royce, the first Phantom Drophead Coup?®s left the UK manufacturing plant at Goodwood in July.

These new models will have a positive impact on our retail figures for the rest of the year. We therefore expect all three brands to show a new record in retail at the end of the year.

The second quarter can be considered as an indicator of this trend. In June, we achieved a 15 percent increase over the same month last year. And we expect an even stronger rise in July.

What we see here is that our new models are the next step in enhancing our EfficientDynamics strategy.

What does this actually mean?

We will continue to improve performance while lowering fuel consumption and CO2 emissions. This kind of innovationÔÇölike all innovationsÔÇöcomes at a cost. A fact that is reflected in our income statement.

But one thing is for certain: Investing in EfficientDynamics is a clear investment in our future ÔÇô not only for our company but for our society.

And we plan to keep our promise. Step by step, the various EfficientDynamics measures are to be implemented in our entire fleet.

This is the only way to make a noticeable difference. Just labeling a model to be environmentally friendly does not truly benefit the environment.

Following the BMW 1 and 5 Series, the BMW 3 Series is next to be equipped with our new, highly efficient engines as well as other EfficientDynamics components. Starting this Fall, 40 percent of all BMW Group new cars in Europe are going to emit a maximum of 140 grams of CO2 per kilometer.

Implementing our EfficientDynamics strategy is not only challenging but also mammoth in scope because these measures will cover all our models. Our multi-launch initiative in 2007 is part of this endeavor and is certainly one of the most complex launch programs we have ever had.

In the first half of this year alone, we had a total of 8 new models and updates available for our customers. And we announced that we will be launching 6 more models in the coming six months.

In total, we are talking about 14 new models in one year.
In my opinion, this is quite an achievement for the BMW workforce.

This definitely has put an exceptional strain on all our processes within the company ÔÇô ranging from development to production, to retail.


However, we are convinced that these efforts will pay off over the long term:

With EfficientDynamics, we are technologically today where other car companies plan to be the day after tomorrow.

This complete range of technologies is second-to-none, a unique offer in our industry. EfficientDynamics gives us a competitive edge. This has been often verified by various independent motor media.

High-performance and environmentally-friendly premium cars raise our companyÔÇÖs value.

Increasing our companyÔÇÖs value is also the objective behind our intensive strategic review for the BMW Group. We are going to present specific results some time this Fall. However, we are definitely not going to comment on this review at the Frankfurt Motor Show.

I am sure you understand that our new products will take center stage there. But you can rest assured that there will also be some surprises in store for you at this event.

Speaking of surprises: You might have been surprised when you heard about BMW Motorrad acquiring Italian manufacturer Husqvarna Motorcycles.

This move will enable us to expand our offering in the entire off-road and supermoto segment. It also allows us access to a global sales network in the off-road segment. As a result, we will be able to target young customer groups, thus strengthening our activities in this sector.

We also announced that we would be increasing the production capacity to more than 200,000 units per year at our US-based plant. The related plans for this are underway.

The Husqvarna motorcycle acquisition and the production expansion at Spartanburg are both elements of the groupÔÇÖs strategy process. As I stated before, we will announce more on our strategy review some time this coming fall.



Ladies and Gentlemen,

We have clearly defined goals for the business year 2007, and we will continue to pursue them persistently:

ÔÇó A new automobile retail record at BMW, MINI and Rolls-Royce. All in all, we expect group retail to rise in the high single-digit percentage range.
ÔÇó And despite the unexpectedly high burdens we are facing, we aim to achieve profit before tax exceeding our 2006 result, excluding the one-off effect from the Rolls-Royce exchangeable bond.

Thank you very much for your interest and attention.

 

[mika]

Statement by Stefan Krause, Member of the Board of Management of BMW AG, Finance, Telephone Conference Interim Report as of 30 June, 2007

Statement by
Stefan Krause
Member of the Board of Management of BMW AG; Finance,
Conference Call on the Interim Report as of June 30, 2007
1 August 2007

Dear Ladies and Gentlemen,

As expected, our automobile retail trend accelerated in the second quarter. Therefore, we will continue to be on track.

As we announced at the beginning of the year, we are now benefiting from the successful introduction of new models and the measures we have taken to implement our EfficientDynamics strategy.

Following the stable retail figures posted in the first quarter, we already managed to increase retail by 8.6% in the second quarter. This means that retail growth for the first six months was 4.6%.

However, earnings were dampened by the various launch and startup costs incurred in connection with new models and engine variants as well as the run-up to production during the market introduction phase. We also had to cope with the increased negative effects of currencies and raw material prices.

All in all, we are satisfied with the earnings we generated in the first six months. This financial year, we will continue to strive to increase the profit before tax over the record level achieved last year, net of the one-off effects of the Rolls-Royce exchangeable bond. However, we expect the headwinds arising from the currenciesÔÇÖ weakness to be stronger than originally anticipated. Compared with last year, we will have to contend with additional burdens stemming from continually rising raw material costs.
Having presented these key financials, I would like to highlight some of the details of our business performance by segment:

The Automobile Segment

ÔÇó As I mentioned briefly, the Automobile segment witnessed a positive retail and revenue trend in the first six months.

ÔÇó Segment revenues in the second quarter of 2007 were up 10.2% year on year to 14.257 billion euros. This corresponds to a 6.2% rise in revenues to 25.675 billion euros for the first half of the year.

ÔÇó However, the introduction of new models and model updates placed a burden on earnings due to the associated startup and market launch costs in the first half of the year, as was the higher scheduled depreciation as well as higher research and development costs. Additional adverse effects in the first two quarters were also felt from the rise in raw material prices and the weakness of the US dollar and Japanese yen.

ÔÇó In the second quarter, the profit before tax achieved by the Automobile segment amounted to 801 million euros. This represents a 15.4% decrease compared to the same quarter last year.

The Financial Services Segment

Our financial services business recorded another dynamic business development in the second quarter.

ÔÇó In the first half of the year, the business volume in balance-sheet terms rose by 17.8% to approximately 48.811 billion euros.

ÔÇó In the first six months, the penetration rate, which reflects the share of new vehicles leased or financed via the segment, increased to 44.0% from 42.1% in the same period last year. Once again, the lease business displayed stronger growth than credit financing.

ÔÇó In the first six months, the profit before tax earned by the segment was up 5.4% to 372 million euros year on year. In the quarter that just ended, Financial Services generated a profit of 189 million euros.

The Motorcycle Segment

In the motorcycle segment, the introduction of new models has had a positive effect on retail, revenues and earnings. Posting 5.6% growth, the Motorcycle segmentÔÇÖs retail development showed a positive trend in the first half of the year, whereas the development of retail by quarter differed from what we had expected.

ÔÇó In the first six months, revenues generated by the motorcycle business improved by 4.2% to 763 million euros. In the second quarter, however, revenues dropped by 5.5% to 396 million euros due to the decline in retail, which was below the year-earlier level.

ÔÇó The profit before tax in the second quarter totaled 56 million euros and was therefore unchanged compared with the same period last year. In the first half of the year, the profit earned by the motorcycle business rose to 90 million euros, or 5.9%.

Reconciliations

Now let??s turn to reconciliations. We ended the second quarter of 2007 with a positive balance of 19 million euros, compared with the 49 million euros we recorded in the same quarter last year.
Due to the major effect of exchanging the Rolls-Royce exchangeable bond in the first quarter of 2006, the figures reported for the first half of last year also had a positive balance of 384 million euros. The reconciliations for the first half of this year result in a positive balance of 45 million euros.
Group Income Statement

Following the segment perspective, I would like to comment on select items from the Group Income Statement.

ÔÇó Depreciations were higher in the first half of the year, since the depreciation of capital expenditure on property, plant and equipment and development costs begins when the production of new models starts. We expect that depreciation will increase considerably for the year as a whole.

ÔÇó This is compounded by the effects of currencies, which continue to display a downward trend. As of today, we are almost fully hedged in all major currencies for the year. Due to the weakness of these currencies, we have had to contend with stronger headwinds than expected, despite our high hedging ratio. However, the adverse effect of foreign exchange rates on the current financial year will not exceed last yearÔÇÖs level. Having said that, I would like to emphasize that the foreign exchange rates managed by our hedging strategy will be much better than current spot rates.

ÔÇó The prices of raw materials such as steel, precious metals and other basic commoditiesÔÇöwhich have remained high or continued to riseÔÇöhad a negative effect on the profit earned in the first half of the year. The burden resulting from the increase in raw material prices on the profit in fiscal 2007 will be roughly on par with last year.

ÔÇó As I mentioned earlier, we implemented Efficient Dynamics measures in our high-volume 1 and 5 Series in the first half of the year. In addition, once we have introduced highly efficient engines for the 3 Series in the fall of 2007, about 40% of the BMW GroupÔÇÖs new vehicles in Europe will emit a maximum of 140g of CO2 per kilometer.

The extensive development work required to achieve this is reflected in a significant rise in research and development costs in the first half of the year and especially in the second quarter of 2007. In the second quarter, research and development costs were up 39.6% to 835 million euros. In the first half of the year, the increase was already amounting to 22%.

In the second quarter, the proportion of capitalized development costs declined to 36.4% from 44.8% in the same period last year. The capitalization ratio therefore dropped in the first half of the year as well, falling from 41.8% to 38.9%.

ÔÇó Due to the large number of market launches, sales costs increased by 16% or 167 million euros, posting a significant year-on-year rise in the second quarter as well.

ÔÇó Due to the aforementioned effects and negative factors, which were most evident in the Automobile segment, Group profit before the financial result was down in the second quarter, declining by 19.1% to 1.019 billion euros. The EBIT margin recorded in the quarter that just ended was 6.9%. In the first half of the year, the profit before the financial result amounted to 1.931 billion euros. This corresponds to a 10.1% decrease compared with the same period last year.

ÔÇó In the second quarter of 2007, the financial result improved to 46 million euros from -28 million euros in the same quarter in 2006. In the first half of 2006, the partial settlement of the Rolls-Royce exchangeable bond of course had an exceptionally positive impact on the financial result. By the end of June 2007, the financial result had slipped to -14 million euros from the 379 million euros recorded a year earlier.


The profit before tax for the first six months totaled 1.917 billion euros. This represents a 24.2% decline compared with the same period last year. Net of the one-off effects arising from the exchangeable bond, Group profit before tax for the first six months would only have declined by 13.4%.


Group Net Profit

Group net profit amounted to 1.340 billion euros in the first half of 2007 and was much lower than the high level of 1.735 billion euros achieved in the same period in 2006, which was positively affected by the book gain realized from the partial settlement of the Rolls-Royce exchangeable bond. In the second quarter in 2007, net profit totaled 753 million euros and was therefore only marginally down year on year, slipping by 4.3%.
In the second quarter of 2007, the effective tax rate decreased to 29.3% from the 36.1% recorded a year earlier

Cash Flow

ÔÇó Operating cash flow, that is cash flows from operating activities in the industrial business, amounted to 1.5 billion euros in the second quarter of this year and 2.8 billion euros in the first six months. Operating cash flow was down on the same period last year, primarily due to the change in net current assets.
ÔÇó Free cash flow at the end of the first half of the year totaled 954 million euros. The decrease compared with the corresponding period last year is mainly due to the rise in capital expenditure. Capital expenditure on property, plant and equipment and net current assets were high in the first half of 2007, due to the preparation of the production of new models in our plants and the high inventory levels for new models for their respective market launches.

Ladies and Gentlemen,

The development we have witnessed in the first six months is in line with our expectations. We expect to see a successful business trend across all segments in the second half of the year.

Automobile retail picked up as early as the second quarter, following the successful model launches. We expect retail to display dynamic developments in the months ahead. Therefore, we remain confident of the automobile business being able to grow retail by a high single-digit percentage for the year as a whole.
This financial year, we will continue to strive to increase the profit before tax over the level achieved last year, net of the 372 million euro one-off effect of the Rolls-Royce exchangeable bond in 2006.

Due to the most recent developments in yen and dollar spot prices and the development of the price of key raw materials, the opportunities that we expected to spur even stronger earnings improvement have now completely vanished.

I would now like to go into more detail on a few other aspects concerning the full year.

ÔÇó Due to the present developments on the raw material markets, we anticipate that the dampening effects will be roughly on par with last year.

ÔÇó Moreover, we expect that currency trends will affect us more than anticipated for the full year as well. However, the adverse effect of foreign exchange rates on the current financial year will not exceed last yearÔÇÖs level.

ÔÇó In addition, we will incur higher research and development costs this year, in part due to Efficient Dynamics technologies.

ÔÇó We will also have to book a rise in depreciation on property, plant and equipment as well as capitalized development costs.

ÔÇó In contrast, efficiency enhancements, and the dynamic retail trend will have a positive effect on the profit earned this financial year.

Thank you for our interest and attention.

 

[mika]

PressClub USA

No motorcycle figures in the following report.

BMW GROUP (USA) REPORTS STRONG JULY SALES

July sales for the Group (BMW and MINI) increase 20.1 percent.
MINI reports its 200,000th car sold since its start in the U.S.


Woodcliff Lake, NJ - August 1, 2007... The BMW Group in the U.S. (BMW and MINI combined) reports strong July sales of 28,364 vehicles, an increase of 20.1 percent over the 23,611 vehicles sold in July 2006. The BMW Group also increased its year-to-date sales volume to 192,702 vehicles, an increase of 6.5 percent, compared to 180,857 vehicles in the same period of 2006.

BMW Brand Sales
Sales of BMW brand vehicles climbed 21.0 percent to 24,295 compared to 20,083 units in the same month a year ago. Year-to-date BMW brand sales increase 7.4 percent, to 168,874 vehicles compared to 157,303 vehicles sold in first seven months of 2006.

BMW Automobile Sales
BMW's automobile sales are up 22.8 percent in July to 19,083 versus 15,546 in the same month a year ago. Year-to-date sales are also up 7.5 percent, to 132,479 automobiles compared to 123,197 in the same period of 2006.

BMW Sports Activity Vehicle Sales
Sales of BMW Sports Activity Vehicles increased by 14.9 percent in July to 5,212 vehicles over the 4,537 sold last July. Year-to-date, sales of BMW Sports Activity Vehicles are up 6.7 percent, to 36,395 vehicles compared to the 34,106 sold in the first seven months of 2006.

Certified Pre-Owned
Sales of BMW's Certified Pre-Owned vehicles reached its best July ever. Sales are up 2.9 percent, to 7,178 vehicles versus 6,977 vehicles reported last July. Year-to-date, CPO sales are down 3.6 percent, to 49,562 over the 51,416 reported in the same period in 2006.

MINI Brand Sales
MINI Automobiles
MINI USA reached a significant milestone in July: 200,000 MINIs have been sold in the U.S. since its launch in 2002. This is more than double the number of cars projected initially for the U.S. within this timeframe.

In July MINI USA reports sales of 4,069 automobiles, a strong increase of 15.3 percent, from the 3,528 cars sold in July 2006. Year-to-date, the division reports sales of 23,828 automobiles, an increase of 1.2 percent, compared to the 23,554 cars reported in the first seven months of 2006.

STATEMENTS BY DR. NORBERT REITHOFER AND STEFAN KRAUSE - Q2 2007 INTERIM REPORT CONFERENCE CALL
See UK PressClub


BMW GROUP REMAINS ON COURSE IN SECOND QUARTER 2007
See UK PressClub


Motorsports PressClub

Yesterday BMW Sauber F1 made way so that Sebastian Vettel could join Torro Rosso. Today they make way for all the Q2 2007 corporate reporting.


BMW Sauber F1: Website

BMW Motorsport

BMW Yachtsport

BMW Golfsport

BMW Oracle Racing

BMW Sport website

 

[PAULBACH]

12 Hints for Better Landscape hots

Nice find in this Morning Reads. With August on hand and fall color around the corner now is the time to practice some landscape shots. Remember the Foundation is looking for some inspiring shots for their note cards.


Twelve Ways to Improve
Your Digital Landscapes

1. Shoot in Camera RAW Format
2. Always be on the Lookout for New Locations
3. Shoot During Hours of Dawn and Dusk
4. Arrive Early and be Ready
5. Bracket Your Exposures
6. Use a Tripod
7. Keep in Mind the Rule of Thirds
8. Do Not Forget to Look Around
9. Shoot Often
10. Keep a Photo Diary
11. Recognize that You May Come Back Empty Handed
12. Learn How to Use Photoshop (CS2 or Elements)

Nice find Mika.

 

[BRADFORDBENN]

I made the daily reads in photo form!!!

Thanks for the info on the Bridge.