mika
Still Wondering
BMW Group revenues of euro 53 billion in 2008
02/06/2009
Full-year revenues only moderately lower
Munich. Revenues of the BMW Group declined only moderately in 2008 despite the worldwide financial and economic crisis. Group revenues decreased by 5.0% to euro 53,197 million (2007: euro 56,018 million). Revenues of the Automobiles segment dropped to euro 48,782 million (2007: euro 53,818 million /-9.4%) reflecting lower sales volumes. The Motorcycles segment reported sales of euro 1,230 million (2007: euro 1,228 million / +0.2%), whilst the Financial Services segment increased its revenues by 12.8% to euro 15,725 million (2007: euro 13,940 million).
Unsurprisingly in the face of difficult business conditions in 2008, the BMW Group was not able to match the previous year's record sales volume figure. Set against the previous year's high level, however, the 4.3% sales volume decrease was also moderate. In total, the BMW Group sold 1,435,876 BMW, MINI and Rolls-Royce brand vehicles in 2008 (2007: 1,500,678 units). The group therefore recorded its second-best annual sales volume figure in its history (behind 2007).
Market climate deteriorated further in fourth quarter 2008
Worldwide business conditions for the automobile sector deteriorated sharply again in the fourth quarter 2008 adversely affecting business performance. Apart from the great reticence to purchase new vehicles, there were also no signs of stabilisation on the used car markets and consequently of residual values for vehicles coming out of leases. Despite the worsening financial and economic crisis, the BMW Group will be reporting clearly positive group earnings for the financial year 2008. The Annual Report for the full year 2008 will be presented at the Annual Accounts Press Conference on 18 March.
Capital expenditure at previous year's level
Capital expenditure, at euro 4,204 million (2007: euro 4,267 million/-1.5%), was lower than in the previous year. The main focus of capital expenditure was on product and infrastructure investments in conjunction with production start-ups for new models such as the BMW 7 Series, the Z4, the X1 and the MINI Convertible. Capital expenditure for property, plant and equipment and other intangible assets increased by 1.1% to euro 2,966 million (2007: euro 2,934 million). In addition, at euro 1,224 million (2007: euro 1,333 million), development expenditure recognised as assets in accordance with IFRS was 8.2% lower than in the previous year.
Workforce reduced
The number of employees was reduced over the past year as a result of the previously reported personnel-related measures, the sale of business units, natural staff turnover and the expiry of temporary contracts. At the end of 2008, the worldwide workforce comprised 100,041 employees (31 December 2007: 107,539 employees), 7.0% fewer than one year earlier. Approximately 4,000 voluntary employment contract termination agreements had been signed by the end of December. In addition, almost 1,800 posts were reduced in conjunction with the sale of the Cirquent Group to NTT Data. The number of trainees at the year-end (4,102) remained at a high level (31 December 2007: 4,281).
MINI and Rolls-Royce achieve new sale volume records in 2008
The year 2008 presented the whole of the automobile industry with enormous challenges. The BMW Group was nevertheless able to achieve new sales volume records for its MINI and Rolls-Royce brands. One of the main contributing factors enabling the sales volume decrease to be kept to a moderate 4.3% was the BMW Group's "Efficient Dynamics" technology which is helping to reduce fuel consumption and CO2 emissions. All new BMW and MINI models are now equipped with this technology as a standard feature. In Europe alone, the BMW Group delivered some 830,000 vehicles in 2008 equipped with Efficient Dynamics.
In 2008, 1,202,239 BMW brand vehicles (2007: 1,276,793 units/-5.8%) were sold worldwide, well ahead of the volumes achieved by relevant competitors in the premium segment. MINI was again able to increase the number of units sold, thus setting a new sales volume record. In total, 232,425 units were sold, 4.3% more than in the previous year.
With 1,212 units sold (2007: 1,010 units), Rolls-Royce Motor Cars recorded a sales volume growth of 20.0%. This was the fifth annual increase in succession, ensuring that Rolls-Royce remains the undisputed market leader in the ultra-luxury segment.
BMW again the leading European car brand in USA in 2008
The USA remained the largest single market for BMW, MINI and Rolls-Royce brand cars in 2008. In total, the BMW Group sold 303,639 units (2007: 336,225 units / -9.7%) on this market. Despite a sales volume drop of 15.2% as a consequence of the financial crisis, the BMW brand was again the leading European car brand in the USA in 2008 with 249,113 units sold (2007: 293,795 units). MINI can also look back on a successful performance in the USA in 2008 with sales up by 28.6% to 54,077 units (2007: 42,045 units). This was the best year for the brand in the premium small-vehicle sector in the USA since its market launch in 2002.
Germany remains the BMW Group's second largest market with 284,353 units sold in total (2007: 284.690 units sold /-0.1%). With sales almost at the previous year's level, the BMW Group performed significantly better than the German market as a whole which saw a contraction of 1.8% in 2008.
BMW Motorrad almost matches previous year's record sales volume figure
BMW Motorrad was almost able to match its previous year's record sales volume figure despite unfavourable business conditions on the world's motorcycle markets. In total, 101,685 BMW motorcycles (2007: 102,467 units) were sold in 2008 (-0.8%).
Further growth for financial services business
Financial services business continued to grow in 2008. The volume of new retail customer contracts rose by 3.1% to euro 29,341 million. The proportion of new BMW and MINI brand cars financed by the Financial Services segment amounted to 48.5%, up by 3.8 percentage points compared to the previous year. This increase was largely attributable to the higher proportion of credit financing, while lease financing remained fairly constant.
* * *
The BMW Group - an Overview
2008 2008 2007 Change
in %
Vehicle production
Automobiles units 1,439,918 1,541,503 -6.6
Motorcycles units 104,220 104,396 -0.2
Deliveries to customers
Automobiles units 1,435,876 1,500,678 -4.3
Motorcycles units 101,685 102,467 -0.8
Workforce at year-end 100,041 107,539 -7.0
Revenues euro million 53,197 56,018 -5.0
thereof:
Automobiles euro million 48,782 53,818 -9.4
Motorcycles euro million 1,230 1,228 +0.2
Financial Services euro million 15,725 13,940 +12.8
Reconciliations euro million -12,540 -12,968 -
Capital expenditure euro million 4,204 4,267 -1.5
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In recent times BMW has not separated production and delivery figures choosing to report only the production figures in their press releases and other reports. The difference may give us a glimpse into two different things. First the inventory of motorcycles held by BMW as a result in not matching production cut backs to market demand. The second is, in part, production of street versions of the S1000RR to meet FIM homologation requirements for BMWÔÇÖs entrance into World SuperBike and being held until the release date this spring. This may be better explained when the annual report is released.
Concerns for the financial viability of the Motorrad Segment have been raised on the forum recently. The numbers give no indication of how much of the revenue for this segment fell to the bottom line. It is encouraging in relation to viability concerns that reported revenues show a increase on a declining unit delivered number along with an unusual inventory increase. Finally, if I were the head of the Motorrad Segment I wouldn't be smug when walking into a Munich meeting of the various Segment heads, but I would feel good that my Segment should an increase in revenues when the lead for the press release for the company is a down turn.
BMW Motorcycles 3,731 +1.1%
]
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BMW Group worldwide sells 70,405 vehicles in January
02/06/2009
Strong demand for new BMW 7 Series
Munich. Ongoing challenges in the global automotive markets resulted in a decrease in worldwide sales at the BMW Group in January. In the month under review the Group sold 70,405 (prev.yr.: 92,849) vehicles of its three automobile brands, BMW, MINI and Rolls-Royce - 24.2% fewer than in January 2008.
In the first month of the new year the BMW brand reported 60,248 (prev.yr.: 77,351) deliveries - 22.1% lower than for the same period last year. In the month under review 10,120 (prev.yr.: 15,457 / -34,5%) customers bought a MINI brand vehicle.
The MINI sales reduction was in part due to the lack of availability of the MINI Convertible which ended production in mid 2008 with the new model launch scheduled for March 28th. The previous model accounted for a substantial share of total MINI retail, averaging 16% of sales. More than 164,000 of MINI's soft-top models were sold between 2004 and 2008, which by far exceeded expectations. In January Rolls-Royce handed over 37 automobiles to customers
(prev.yr.: 41 / -9.8%).
Ian Robertson, Member of the Board of Management of BMW AG, responsible for Sales and Marketing: "Current market conditions remain extremely challenging. However, our Efficient Dynamics strategy is expected to continue to provide momentum for the BMW Group with more and more European countries moving towards CO2-based vehicle taxes. No other manufacturer reduced its fleet's CO2 emissions more than the BMW Group last year."
Deliveries of the BMW 7 Series continue to do well as a result of the European market launch of the new model. With 2,498 units sold, 5.1% more vehicles were delivered in January than in the same month last year. Sales of BMW's flagship are expected to get another strong boost when the Series is also launched in China (in late January) and the United States (in mid-March). These markets accounted for more than 50% of the previous model's total retail. Demand for the BMW X6 also continues to be strong, with 2,846 deliveries, as well as for the new BMW 1 Series Coup?®, which saw a major increase in sales (+81.6%) to 1,295 (prev.yr.: 713) units.
BMW Motorrad started the year well. Against the overall negative market trend, BMW Motorrad exceeded the previous year's sales (prev.yr.: 3,689/ +1,1%) for January with 3,731 units sold. This was largely due to continued strong demand for the F 650 GS and F 800 GS two-cylinder motorcycles which were introduced during the course of last year. The company expects to receive a further boost from the launch of the revised K models K1300R, K1300S and K1300GT on the market in February.
BMW Group sales in January 2009 at a glance
In January 2009 Compared with previous year
BMW Group Automobiles 70,405 -24.2%
BMW 60,248 -22.1%
MINI 10,120 -34.5%
Rolls-Royce 37 -9.8%
BMW Motorcycles 3,731 +1.1%
It is nice to see an increase in Motorrad sales this January over last January. No break out of the numbers by model is given. Based on other PressClub releases and the buzz in the European press suggests this is the result of strong sales in the G line. According to reports the G450X has been selling well since its September release and the return of the G650GS to the line up have been very well received in key European markets.
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