Solid start to 2017 for BMW Group

Solid start to 2017 for BMW Group

04.05.2017: Significant revenues and earnings growth Automotive segment EBIT margin within target range

    Significant revenues and earnings growth

    Automotive segment EBIT margin within target range

    Sales of electrified vehicles doubled

    Made in Germany: BMW iNEXT to be produced in Dingolfing

    BMW Group reaffirms outlook for full year 2017

    Krüger: Focus on profitability and rigorous implementation of Strategy NUMBER ONE > NEXT



Munich. The BMW Group has begun the financial year 2017 with a solid first quarter and made excellent progress in terms of implementing Strategy NUMBER ONE > NEXT. Deliveries of electrified vehicles, for instance, doubled to nearly 20,000 units in the first quarter.

In addition, the BMW Group announced its intention to build the BMW iNEXT as the company’s technological spearhead at its Dingolfing plant. The iNEXT, which is due to be unveiled in 2021, will set the benchmark in terms of automated driving, electrification and connectivity. The decision underlines the significance of Germany as a location for developing future technologies and shaping tomorrow’s mobility.


The BMW Group recorded significant first-quarter growth in terms of both revenues and net profit. Alongside a solid operating performance, positive valuation-related earnings effects included in the financial result also contributed to the sharp rise in profit before taxes.

“We shall continue to focus on rigorously implementing Strategy NUMBER ONE > NEXT and ensuring sustainable high profitability in order that we can shape future mobility by leveraging our own resources. That is how we will measure our success,” commented Harald Krüger, Chairman of the Board of Management of BMW AG, in Munich on Thursday.


In the first quarter, the BMW Group embarked on the most substantial model offensive in its history with the launch of the new BMW 5 Series. Around 40 new and updated models of the BMW Group’s three premium brands will be brought to market during 2017 and 2018.

“Customers are excited by the new 5 Series Sedan, as we can see in its extremely good market reception. We expect the BMW Group's three premium brands to set new delivery records again in 2017 and the Group to remain the leading manufacturer of premium vehicles,” stated Krüger.


Particular emphasis is being placed on the upper-premium segment. Through the focussed addition of highly emotive vehicles, the BMW Group is targeting significant sales volume growth in this segment by 2020. Alongside the BMW 7 Series, the BMW Group will be launching other models in this segment, including the BMW X7.


New sales volume, revenues and earnings records in first quarter


First-quarter deliveries of BMW, MINI and Rolls-Royce brand vehicles rose by 5.3% to 587,237 units (2016: 557,605 units). All the Group's major sales regions contributed to this increase. Thanks to this strong performance, Group revenues for the period from January to March were significantly higher at € 23,448 million (2016: € 20,853 million; +12.4%).

Profit before financial result amounted to € 2,646 million, 7.7% up on the previous year’s corresponding figure of € 2,457 million. Group profit before tax (EBT) was also significantly higher at € 3,005 million (2016: € 2,368 million).

This significant increase was largely due to the following effects: a positive valuation effect of € 183 million in connection with the participation of new investors in the mapping service HERE, an increase in the other financial result of € 122 million, driven mainly by valuation effects, and a higher profit contribution from the Chinese joint venture BMW Brilliance Automotive Ltd. As a result, the Group’s EBT margin climbed to 12.8% (2016: 11.4%) in the first quarter. Group net profit rose by 31.0% to € 2,149 million (2016: € 1,641 million).


“The first quarter results lay a very sound foundation for us to achieve our ambitious targets for 2017. Given that the BMW Group is embarking on the biggest model offensive in its corporate history, we expect start-up and marketing costs regarding new models to increase over the course of the year.

We will also incur high upfront expenditure in connection with electric mobility and autonomous driving,” pointed out Nicolas Peter, member of the Board of Management of BMW AG responsible for Finance. “Short-term gain is not the decisive factor for us: we remain focussed on sustainable, profitable growth.”


Automotive segment: EBIT margin within target range


First-quarter revenues for the Automotive segment grew by 10.0% to € 20,692 million (2016: € 18,814 million). EBIT improved by 6.1% to € 1,871 million (2016: € 1,763 million). The EBIT margin in the Automotive segment came in at 9.0% (2016: 9.4%) and was therefore within the targeted range of between 8 and 10%. On account of the factors described above, profit before tax rose by 31.4% to € 2,279 million (2016: € 1,734 million).


BMW Group vehicles with electrified drivetrains performed particularly well during the first quarter, as nearly 20,000 BMW i3, BMW i8 and BMW iPerformance plug-in hybrids were sold, twice the previous year’s corresponding figure. “We are therefore well on course to delivering more than 100,000 electrified vehicles for the first time in 2017,” Krüger stated.

Electrified vehicles accounted for more than three per cent of all BMW Group vehicle deliveries to customers in the first quarter (Q1 2016: 1.7%).

With the launch of the BMW i3 almost four years ago, the BMW Group was an early pioneer of electric mobility and has remained true to its strategy ever since. When the first MINI brand plug-in hybrid model is introduced in summer 2017, the BMW Group will have nine electrified models in its portfolio.

The BMW i8 Roadster is set to follow in the coming year and the first all-electric MINI is due in 2019. In 2020, the battery-powered BMW X3 will integrate all-electric mobility into the Group’s core brand. One year later, the new BMW iNEXT is set to take to the roads. As the BMW Group’s new technological spearhead, it will set the benchmark in the future-oriented ACES fields Autonomous, Connected, Electrified and Services/Shared.


Deliveries of BMW brand vehicles totalled 503,445 units (2016: 478,743; +5.2%), surpassing the half-million figure for the first time in an opening quarter. Sales volume growth came from various areas, including good contributions made by the BMW Group’s flagship model, the BMW 7 Series, and the BMW X-family models.

Nearly 16,000 units of the BMW 7 Series were sold, 50.2% more than one year earlier. Sales of the BMW X1 jumped by 29.5% to 66,063 units in the first quarter. Similarly, the BMW X3 (41,742 units; +7.8%) and the BMW X5 (45,892 units; +17.7%) also recorded significant growth.


Sales of 83,059 units during the first three months 2017 also represented a new first-quarter sales volume record for the MINI brand (2016: 78,311 units; +6.1%). The new MINI Clubman reported a significant rise, with deliveries to customers increasing to 14,830 units (2016: 12,173 units; +21.8%). First-quarter sales of the new MINI Convertible tripled to 7,705 units (2016: 2,553 units). With 47,530 units sold, the MINI 3 and 5 door models matched their previous year’s performance (2016: 47,396 units; +0.3%).


Following the second highest annual sales in 2016, Rolls-Royce Motor Cars sales in the first quarter of 2017 were up year-on-year. This was based on full market availability of Dawn compared with the same period last year.

 In total, 733 Rolls-Royce motor cars were delivered to customers across the globe (+33.0%). Demand for Rolls-Royce models remains strong in most regions, although this is set against ongoing market volatility in the global luxury industry as a whole. Rolls-Royce continues to strive for long-term sustainable growth.

The BMW Group's upward sales volume trend continued in Europe, with 267,996 units (2016: 257,120 units) delivered to customers during the first three-month period, up 4.2% year-on-year. Solid growth was reported in a number of markets, including Great Britain (+6.5%; 63,004 units), France (+5.4%; 21,943 units) and Italy (+6.7%; 21,278 units).


First-quarter sales of BMW Group vehicles in Asia rose by 9.2% to surpass the 200,000-unit mark (200,140 units; 2016: 183,204 units). Significant growth was also achieved on the Chinese mainland, where sales climbed by 12.4% to 142,958 units. First-quarter deliveries in Japan went up by 5.2% to 19,681 units.


Sales in the Americas region increased slightly by 2.0% to 102,238 units (2016: 100,245 units), including 82,169 units delivered to customers in the USA (+0.7%).


Motorcycles segment sets new delivery record


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).


Financial Services segment firmly on course


The Financial Services segment continued to perform well during the first quarter. A total of 465,634 new credit financing and leasing contracts (2016: 413,372 contracts) were signed with customers between January and March, an increase of 12.6%.

 Including contracts with dealerships, 5,214,729 credit financing and leasing contracts were in place at the end of the first quarter (31 March 2016: 4,786,441 contracts), 8.9% more than one year earlier. First-quarter segment revenues rose by 16.8% to € 7,046 million (2016: € 6,032 million), while profit before tax was 4.4% higher at € 595 million (2016: € 570 million).


Workforce increased


The size of the BMW Group's workforce increased by 3.0% year-on-year and comprised 126,317 employees (2016: 122,692 employees) worldwide. The BMW Group continuously hires skilled experts and IT specialists in future-oriented areas, such as digitalisation and automated driving.


BMW Group reaffirms targets for the financial year 2017


The BMW Group is confident of achieving its projected targets for the current financial year, largely thanks to its strong brands, its attractive product portfolio and the expectation that international automobile markets will continue their generally upward trend. These favourable factors contrast with high levels of upfront expenditure for new technologies, fierce competition and rising personnel expenses. The global political and economic environment is expected to remain volatile.


The BMW Group reaffirms its targets for the full year. "We forecast slight increases, and hence new record figures, for Automotive segment sales volume and profit before tax in 2017,” stated Krüger. With its three premium brands, the BMW Group is therefore confident it will remain the world's leading manufacturer of premium vehicles in 2017.


Automotive segment revenues are also set to grow slightly over the year on the back of higher sales volumes. The EBIT margin for the Automotive segment in 2017 is forecast to remain within the targeted range of between 8 and 10%.


Forecasts for the current year are based on the assumption that worldwide economic and political conditions will not change significantly.


Kenn Sparks- photo BMW


04.05.2017 / MaP

More News

Porsche exceeds its record level
First quarter: Operating result increases to almost a billion euroPorsche AG has made a strong start to the year: In the first three months of 2017, the company increased its operating result, revenue, deliveries and number of employees compared to the more >>
Toyota South Africa leads despite tough conditions
Toyota South Africa has retained its position as market leader with 7 528 unit sales recorded during the holiday month of April. This gives Toyota a margin of 1 767 units ahead of its closest contender, and has resulted in a market shar more >>
Mercedes-Benz Financial Services celebrates 20 golden years
Mercedes-Benz Financial Services (MBFS), a wholly-owned subsidiary of automotive giant, Mercedes-Benz South Africa (MBSA) celebrates 20 successful years this year. MBFS first opened its doors on 01 April 1997. The company started out small with no more than a handful of personnel but currently boasts a staff complement of 190 employees.Over the years, the captive finance more >>
MINI USA announces senior management changes
MINI USA today announced senior management changes within the organization. Tom Salkowsky will become Department Head of Sales for MINI USA. In this role, he will lead the company’s sales, volume planning and distribution operations in the United States. S more >>
Groupe Renault revenues increase 25.2% in the first quarter
Revenues increase 25.2% in the first quarter (+19.7% excluding the impact of the AVTOVAZ consolidation) •    Group revenues totaled €13,129 million in fir more >>
Mitsubishi Motors Announces New Executive Lineup
Mitsubishi Motors Corporation (MMC) announced  that its Board of Directors has decided the following lineup of executives. The changes are subject to approval at MMC's ordinary shareholders' meeting and special board of directors' meeting to be held on June, 2017.  Carlos Ghosn  Representative Director &nb more >>
Honda Invests $124 Million for Advanced Wind Tunnel Facility in Ohio
    Project will lead to advances in product development and enhanced testing for production and race vehicles    New facility to be located at Transportation Research Center (TRC) in OhioHonda tod more >>
Profit before tax and revenues of BMW Group
...above market expectations in first quarter of 2017 In the first quarter of the financial year 2017, the BMW Group achieved a profit before tax of € 3,005 million (2016 Q1: € 2,368 million / +26.9%). This result e more >>
SEAT invests 900 million euros in the new Ibiza and Arona
•    Catalonia’s government President Carles Puigdemont visited the Martorell facilities and learned about the models that SEAT will launch in upcoming years•    The fifth generation Ibiza and the new co more >>
Volkswagen Group reports a significantly higher than expected operating result
...for the first quarter of 2017    The preliminary Group Operating Result for the first quarter is around €4.4 bn    The key difference in the Group Operating Result to market expectations relates among others in particular to improvements in the result of the Volkswagen BrandT more >>
Audi sales down year-on-year in the first quarter
....due to temporary extraordinary effects in China  Record-breaking start to the year in Western Europe and North America; combined sales in both regions up 3.6%      Sales chief Dietmar Voggenreiter: “Given our successful more >>
BMW Group global sales record best- ever March and first quarter
254,862 vehicles delivered worldwide in March, up 5.9%BMW sales increase 5.3%, totalling 212,093MINI sales grow 8.7% to 42,447BMW Group sales in first quarter up 5.3% to 587,237More than half a million BMWs sold in first quarterAlmost 20,000 electrified models sold in first quarterSales growth achieved in all major more >>
Porsche enjoys best first quarter in its history
Increase in deliveries of nearly seven percentPorsche AG has made a strong start to 2017 with around 60,000 vehicles delivered to customers worldwide in the first quarter. This means the sports car manufacturer has exceed more >>
SEAT sales grow by 14% in the first quarter, best performance since 2001
    The brand delivers 117,300 cars worldwide    Spain, the UK, Germany, Austria and Switzerland, primary growth drivers    Mexico increases by 11% and consolidates itself as SEAT’s fourth largest marke more >>
Mercedes-Benz in March: strongest-ever sales month
...with more than 228,000 cars sold    Mercedes-Benz sold more vehicles in March than ever before in one month: 228,296 cars were handed over to customers, an increase of 14.8%.    From January to March, Mercedes more >>
Williams Reports 2016 Annual Results
Significant Improvements in Revenue and EBITDA Williams Grand Prix Holdings PLC (WGPH, Ticker: WGF1) today announced the Group’s financial results for the year ended 31 December 2016. WGPH is the holding company of the Williams group of more >>
Strong Domestic and International Demand Continues for Ford Ranger
•    Ford was the second-best selling brand in March 2017 with 6 433 vehicles sold•    Ranger remains one of SA's top nameplates: second in LCV segment and overall sales•    Best Ranger exports of the year: 4 859 vehicles shipped to Europe, Middle East and Africa•  more >>
Reorganisation of Porsche Design Group’s executive board
Sports car manufacturer takes control of all shares in the Porsche Design GroupPorsche AG has acquired 35 per cent of the shares in Porsche Lizenz- und Handelsgesellschaft mbH & Co. KG (Porsche Design Group) from a Porsche family investment company more >>
Porsche SE: Veränderung der Aktionärsstruktur
Die Familien Porsche und Piëch haben in den vergangenen Wochen Gespräche über eine Veränderung ihrer Beteiligungsstrukturen innerhalb der Familie geführt. Diese Gespräche wurden heute mit der Unterzeichnung von Verträgen abgeschlossen, wonach die im Einflussbereich von Herrn Hon.-Prof. Dr. techn. h.c. Ferdinand K. more >>
Daimler Financial Services connects passenger car fleets
    With the brand "connect business" the new company Mercedes-Benz Connectivity Services GmbH is offering connectivity services for fleet and business customers for the first time.    Web portal, app and system interfaces facilitate more efficient fleet management. more >>
Audi Aufsichtsrat Hauptversammlung
Audi Aufsichtsrat schlägt Hauptversammlung Entlastung aller amtierenden Mitglieder des Vorstands und des Aufsichtsrats vor Der Aufsichtsrat der Audi Aktiengesellschaft schlägt der diesjährigen Ordentlichen Hauptversammlung am 18. Mai 2 more >>
Volkswagen Supervisory Board proposes resolutions ratifying the actions
...of all members of the Board of Management and of the Supervisory Board at the Annual General MeetingAt this year's Annual General Meeting on May 10, the Supervisory Board of Volkswagen Aktiengesellscha more >>
SEAT Achieves The Best Financial Results In Its History
· The company achieves an operating profit of 143 million euros and a profit after tax before extraordinary effects of +232 million euros· Revenues reach a record volume of 8,597 million euros, 3.2% higher· SEAT allocates 862 million euros (+47%) to total investments and R&D expenses · The company generates an EBI more >>
Porsche honoriert Rekordjahr 2016 - 9.111 Euro Sonderzahlung für Mitarbeiter
Die Porsche AG beteiligt ihre Mitarbeiter erneut am Gewinn: Nach dem erfolgreichsten Jahr in der Geschichte des Unternehmens erhalten die Mitarbeiterinnen und Mitarbeiter der Porsche AG eine freiwillige Sonderzahlung in Höhe von bis zu 9.111 Euro brutto. more >>
Porsche SE erreicht Konzernergebnis von 1,37 Milliarden Euro
- Nettoliquidität von 1,30 Milliarden Euro- Wichtige Erfolge in juristischen Auseinandersetzungen-  Jahresausblick 2017 positivDie Porsche Automobil Holding SE, Stuttgart (Porsche SE), hat im Geschäftsjahr 2016 ein Konzernergebnis nach Steuern von 1,37 Milliarden Euro erreicht. Dieses beinhaltet ein Ergebnis aus at Equity more >>
Porsche SE: Mögliche Veränderung der Aktionärsstruktur
Die Porsche Automobil Holding SE (Porsche SE), Stuttgart, wurde davon unterrichtet, dass die Familien Porsche und Piëch Verhandlungen führen, ob die im Einfluss von Prof. Dr. Ferdinand K. Piëch stehenden Stiftungen den wesentlichen Anteil ihrer mittelbar gehaltenen Stammaktien der Porsche SE an weitere Mitglieder der Familien Porsche und Piëch übertragen. more >>
Porsche new records for 2016 financial year
A clear step forward for Porsche in terms of results and returns– Number of employees reaches almost 28,000The most successful year in the history of the company: In the 2016 financial year, Porsche AG achieved recor more >>
Toyota announces new investment in its UK car plant
    Burnaston manufacturing plant in Derbyshire (UK) to be upgraded to enable production of new vehicles using the Toyota New Global Architecture (TNGA) platform    Investment of more than &p more >>
Audi sets strategic path in challenging year 2016
Robust core business: growth in car deliveries and revenue, operating return on sales before special items within target corridor at 8.2 percent      Diesel issue and Takata airbags: after special items of €1.8 billon, operating profit of €3.1 billion and operating return on sales of 5.1 percent      H more >>
Volkswagen driving realignment at full speed
    CEO Matthias Müller: "We are back on track."    Prospects for 2017: Continue positive developments in operations    Focus on swift implementation of "TOGETHER – Strategy 2025"    Fiscal year 2016: New benchmarks in deliveries, revenue and operating result befo more >>
Audi sales in February down slightly year-on-year
Around 125,100 deliveries worldwide in the month – down 1.1 percent      Sales chief Dietmar Voggenreiter: “We are preparing for future opportunities in China with far-reaching strategic decisions”      A5 Coupé due to be launched in North America  more >>
Sales release for smart fortwo and forfour electric drive
- Electric urban model ready to goThe new smart electric drive models are now available to order. In Germany, prices for the smart fortwo electric drive start at 21,940 euros1 and for the forfour electric drive at 22,600 euros. The market launch will be more >>
Porsche SE Dividendenvorschlag von 1,01 Euro je Vorzugsaktie
Vorstand und Aufsichtsrat der Porsche Automobil Holding SE (Porsche SE), Stuttgart, schlagen der am 30. Mai 2017 in Stuttgart stattfindenden Hauptversammlung eine Dividende in Höhe von 1,01 (im Vorjahr 1,01) Euro je Vorzugsaktie und 1,004 (im Vorjahr 1,004) Euro je Stammaktie vor.Das entspricht einer Ausschüttungssumme von rund 308 Millionen Euro an die Stamm- more >>
Mercedes-Benz on successful path month by month
... four years of continuous growth    Mercedes-Benz delivered 153,862 vehicles to customers in February, an increase of 15%    Thanks to its 48th consecutive record month, Mercedes-Benz has grown for four ye more >>
Mercedes-Benz Vans to invest more than two billion euros in new products and services
    2016 most successful year so far with record unit sales, revenue and EBIT    Most of the investment in 2017 and 2018 to be in new products and innovative overall vehicle solutions as well as new production facilities more >>
Volkswagen Group delivers 813,700 vehicles in January
Fred Kappler, Head of Group Sales: "Outside China, the Group recorded solid growth of 4.9 percent in its worldwide markets."In January, the Volkswagen Group handed over 813,700 vehicles to customers worldwide. "Following strong growth la more >>
Statement on General Motors and PSA Group Strategic Initiatives
Since 2012, General Motors and PSA Group have been implementing an alliance covering, to date, three projects in Europe and generating substantial synergies for the two groups.  Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well. PSA Group and Gene more >>
Audi achieves further growth in Europe and North America
Rising demand in Europe (+3.1%) and North America (+11.8%) in January      Worldwide deliveries fall by 13.5 percent to around 124,000 units due to temporary extraordinary effects in China       more >>
Toyota Hybrid sales have now surpassed 10 million units
Toyota Motor Corporation is proud to announce cumulative global hybrid vehicle (HV) sales of 10.05 million units as of January 31, surpassing the 10 million unit mark. More than a numerical milestone, this demonstrates the staying power of more >>
2001-2022 copyright