News of May 16, 2001
Successful First Quarter For The BMW Group
Record results in BMW Automobiles Positive outlook for the 2001 financial year
Munich, Germany - In the first quarter of 2001, the BMW Group set new records for deliveries, sales and profits. In total, 221,777 BMW brand vehicles were sold - a 9.7% increase over the first quarter 2000.
Total sales of the BMW Group reached a level of euro 9.365 million (first quarter 2000: euro 8.736 million) in the first quarter, an increase of euro 629 million (+7,2%) compared with the same period last year. Adjusted by the external sales in the year 2000 attributable to Rover/Land Rover (euro 1.722 million), this is an increase of 33.5%.
In the BMW Group, profit from ordinary activities, at euro 853 million (first quarter 2000: euro 197 million) was euro 656 million (+333%) higher than in the same period in the previous year. In the first quarter 2000, losses at Rover Automobiles totalling euro 363 million were recorded at group level. In the Rover Automobiles segment, losses were euro 424 million because of additional expenditure within the group.
Profits rose from euro 87 million in the first quarter 2000 to euro 409 million in the first quarter.
Prof. Dr.-Ing. Joachim Milberg, Chairman of the Board of Management of BMW AG: "The record figures for the first quarter 2001 prove that our consistent focus on premium brands is taking effect and is being successfully implemented. We are using the strengths of the BMW Group to achieve further profitable growth and are continuing our far- reaching product offensive."
Positive outlook for the 2001 financial year
After the good start in the year, the BMW Group is convinced that the successful development of deliveries, sales and profits will continue throughout the whole of 2001. This will include, particularly in the second half of the year, costs for the expansion of the product portfolio, the new BMW 7 series and the production start of MINI One/MINI Cooper.
BMW Group embarks on product offensive
The BMW Group is utilising its strength in all areas of business in order to use the ongoing product offensive to expand the core brand BMW and to introduce two new group brands - MINI and Rolls-Royce. As announced at the Geneva Motor Show, the development of a large coupé and convertible in the tradition of the BMW 6 series has been decided. In addition, the BMW X3 will be supplementing the highly successful X5, and setting new standards in the Sports Activity Vehicle sector. From 2004, the BMW 1 series will be entering the lower middle class segment as a premium model, where it will be the only vehicle with standard drive providing the ultimate driving experience typical of BMW.
In February, the new BMW 3 series compact was presented at the Geneva Motor Show and will be available to customers from June. In addition, the M3 convertible, the X5 4.6is and the new BMW 7 series will be launched this year. In July 2001, the MINI One and the MINI Cooper will be launched in the UK, followed by the market launch in Germany and the rest of Europe from September.
Record sales and profits for the segment BMW Automobiles in the first quarter 2001
Deliveries to customers in the first quarter increased clearly (+9.7%) to 221,777 vehicles (first quarter 2000: 202,100 units). Improvements were recorded in particular by the 3 series, the Sports Activity Vehicle X5 and the 5 series. Production rose by just under 17% to over 237,733 vehicles (first quarter 2000: 203,359 units), largely as a result of the expansion of capacity in the Spartanburg factory.
Sales in the BMW Automobiles segment rose by an above-average figure of 21.0% to reach euro 8,068 million (first quarter 2000: euro 6,670 million).
The profit from ordinary activities in the BMW Automobiles segment rose by 44.7% to euro 813 million (first quarter 2000: euro 562 million). The significant increase in profit from ordinary activities of euro 251 million, or 44.7% was based partly on an increase in deliveries to customers, but also on the higher proportion of higher-powered engines and increased options. In addition, this result also includes the one-off effect of euro 75 million from the sale of land, which is not required in the long-term operating business.
Optimistic outlook for BMW Motorcycles
In the BMW Motorcycles segment, the first quarter was characterised by the series launch of the R 1150 RT, R 1150 R and K 1200 RS models, which have been available to customers since March.
Altogether, deliveries to customers, at 17,854 units (+0.5%) remained at the high level of the first quarter 2000. Clear increases are expected during the rest of the year due to the high level of orders received. Production in the Berlin factory rose by 7.9% to 23,354 units (first quarter 2000: 21,642 units). This increase is due mainly to the start of production of the new models launched in March.
Sales rose from euro 244 million in the first quarter 2000 to euro 255 million. The profit from ordinary activities reached euro 20 million (first quarter 2000: euro 17 million).
Financial Services pushes forward with expansion of business areas
In the first quarter 2001, the Financial Services division continued the development and expansion of the strategic business areas of fleet management, multibrand financing and direct banking.
The deposit business, which comes under Direct Banking, reached a worldwide volume of euro 2.2 billion, representing an increase of 64% over the first quarter 2000.
Sales, which accounts only the leasing business, reached euro 1,853 million in the first quarter 2001 (first quarter 2000: euro 1,536 million). The 20.6% increase is due to the higher proportion of BMW vehicles in the first quarter 2001.
Profit from ordinary activities fell slightly as a result of increased management and financing costs to euro 90 million (first quarter 2000: euro 96 million).
Group profits negatively affected by fiscal situation
In the first three months of the year 2001, the tax expenditure, at euro 444 million, reached a very high level. The tax reforms, which came into force on 1 January 2001, led to a one-off increase in tax expenditure in the first quarter of euro 181 million due to the necessary modification of deferred taxes. This special factor created a relatively high effective tax rate of 52.1%.
(May 10, 2001)