BMW AG First Quarter Results
SUCCESSFUL FIRST QUARTER FOR THE BMW GROUP
Record Results In BMW Automobiles
Positive Outlook For The 2001 Financial Year
Munich, Germany, May 10, 2001.... 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%.The BMW Group: an Overview
First Quarter First Quarter Change
units/euro million 2001 2000
Vehicle production
BMW Automobiles1 237,733 203,359 16.9%
BMW Motorcycles2 23,354 21,642 7.9%
Deliveries to customers
BMW Automobiles3 221,777 202,100 9.7%
BMW Motorcycles4 17,854 17,757 0.5%
Workforce at end of quarter5 95,259 90,543 5.2%
Cash flow 944 539 75.1%
Sales6 9,365 8,736 7.2%
Profit from ordinary activities 853 197 333.0%
thereof: BMW Automobiles 813 562 44.7%
Rover Automobiles -424
BMW Motorcycles 20 17 17.6%
Financial Services 90 96 -6.3%
Miscellaneous, consolidations -70 -54 -29.6%
Taxes on profit7 444 110 303.6%
Profit 409 87 370.1%
DVFA/SG result per share 0.70 0.18 288.9%
1 in the first quarter 2000 plus 133,377 Rover/Land Rover vehicles
2 in addition 4.087 C1 (first quarter 2000: 2.912)
3 in the first quarter 2000 plus 107,149 Rover/Land Rover vehicles
4 in addition 1.395 C1 (first quarter 2000: 18)
5 as of March 2000 113.731 employees including Rover/Land Rover
6 adjusted for Rover/Land Rover sales in the first quarter 2000 (euro 1,
722 million) sales increased 33.5%
7 thereof in the first quarter 2001 euro 181 million impact of the tax
reform (deferred taxes)
