BMW Group: First-quarter EBIT of minus euro 55 million

07.05.2009: The BMW Group asserted its position in the first quarter 2009 despite the weak state of the sales markets brought about by the global financial and economic crisis. “We have continued our forward-looking

- Positive free cash flow of euro 220 million in first quarter
- BMW Group continues to see 2009 as year of transition


The BMW Group asserted its position in the first quarter 2009 despite the weak state of the sales markets brought about by the global financial and economic crisis. “We have continued our forward-looking finance and cost management strategies with great determination during the opening quarter of the year”, stated Norbert Reithofer, Chairman of the Board of Management of BMW AG on Wednesday in Munich. “In view of the difficult conditions still prevailing on the financial markets, we remain focused in our efforts to improve our liquidity position”, continued Reithofer. Strengthening the liquidity base creates manoeuvring room and ensures that the BMW Group will be able to continue its policy of investing in the future.

The BMW Group’s first-quarter performance was nevertheless perceptibly impaired by the ongoing reluctance of consumers to spend and by high refinancing costs. Group revenues for the quarter fell by 13.4% to euro 11,509 million (first quarter 2008: euro 13,285 million) as a result of the drop in sales volumes. The Group reports a loss before financial result (EBIT) of euro 55 million (first quarter 2008: profit before financial result of euro 827 million). The loss before tax was euro 198 million (first quarter 2007: profit before tax of euro 641 million). The loss after tax was euro 152 million (first quarter 2008: profit after tax of euro 487 million).

A whole range of efficiency improvement measures are being implemented at great pace on both the cost and the revenues side to enable the BMW Group to overcome the current crisis. The BMW Group continued to improve its cost structures during the first three months of the year. It also managed to reduce inventory levels further and to cut back working capital in the Automobiles segment during the same period by euro 1,076 million. “We were able to generate a positive free cash flow of euro 220 million during the first quarter”, stated Reithofer. Group liquidity improved to a total of euro 10.025 billion by the end of the quarter.

BMW Group continues to see 2009 as year of transition


The BMW Group continues to see the current year as one of transition. In view of the fact that it is almost impossible to predict how the global economy will fare in the near future, it is still currently not feasible to give reliable earnings forecasts for the full year 2009. In view of the ongoing weakness of the markets, it is likely that the BMW Group’s worldwide sales volume will be lower than in the previous year. “We intend to maintain or further increase our market shares in the premium segment in the current year”, emphasised Reithofer.

From 2010 onwards, it is expected that the renewed product range will provide impetus for business. This trend should be fuelled further between 2010 and 2012 when the new versions of high-selling models come onto the markets. For the year 2012, the BMW Group continues to target a return on capital employed (ROCE) in excess of 26% and an EBIT margin of between 8% and 10% for its Automobile segment.

A number of new models are to be launched in the near future that will boost sales. The new BMW 7 Series has been available in Europe since the end of 2008. The BMW flagship, which is already the market leader in Western Europe, will be available to customers worldwide by spring 2009. Due to the longer period of availability in the current year, sales of the 7 Series are expected to be above the previous year’s level. The new BMW Z4 will be launched in May. The X1 and the 5 Series Gran Turismo will come onto the markets towards the end of the year. The new MINI Convertible has been available since March. The M variants of the BMW X5 and BMW X6 were presented at the beginning of April.

Consumer reluctance to spend hits Automobiles segment earnings


Weak automobile markets in the wake of the global financial and economic crisis resulted in a sharp sales volume decrease in the first quarter. The total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers fell by 21.2% to 277,264 units (first quarter 2008: 351,787 units). Despite the sharp decrease, the BMW Group nevertheless performed better than the premium segment as a whole. Sales of BMW brand cars dropped by 20.5% to 233,498 units (first quarter 2008: 293,550 units). The number of MINI brand cars sold fell by 24.9% to 43,592 units (first quarter 2008: 58,054 units). Rolls-Royce’s sales performance, with 174 units sold, remained close to the previous year’s high level (first quarter 2008: 183 units/-4.9%).

The BMW Group was able to defend its lead over competitors during the first three months of 2009. The BMW brand increased its market share of the worldwide premium segment to 20.7%. Market share was also increased on the BMW Group’s largest market, the USA.

Earnings of the Automobiles segment fell sharply due to lower sales volumes brought about by the economic crisis. The segment reports a negative EBIT of euro 251 million (first quarter 2008: positive EBIT of euro 619 million) and a loss before tax of euro 471 million (first quarter 2008: profit before tax of euro 539 million). Revenues decreased by 21.0% to euro 9,605 million (first quarter 2008: euro 12,162 million). Net financial assets of the Automobiles segment increased during the quarter by euro 119 million to euro 9,165 billion.

Sales volume decrease for BMW Motorrad in first quarte
r

Difficult business conditions also affected the performance of the Motorcycles segment. The BMW Group sold 17,232 BMW motorcycles during the first three months of 2009, 18.1% fewer than one year earlier (first quarter 2008: 21,046 units). Revenues fell by 15.9% to euro 290 million (first quarter 2008: euro 345 million). EBIT fell to euro 28 million (first quarter 2008: euro 36 million/-22.2%) and the profit before tax dropped to euro 26 million (first quarter 2008: euro 34 million/-23.5%).

The BMW Group continues to expand its motorcycle model range. The three K-series models (K1300 S/R/GT) presented in the previous year have been available to customers since the beginning of February 2009. The new F 800 R will be introduced to the markets in May and the road version of the S1000 RR racing machine will follow at the end of the year.


Financial services business affected by credit crisis


The international financial crisis continued to affect financial services business during the period under report. First-quarter segment revenues edged up by 3.8% to euro 4,003 million (first quarter 2008: euro 3,857 million). EBIT decreased to euro 70 million (first quarter 2008: euro 79 million/-11.4%), while the profit before tax fell to euro 72 million (first quarter 2008: euro 84 million /-14.3%).

The number of lease and financing contracts in place with dealers and retail customers rose by 11.3% to a total of 3,007,406 contracts. The business volume in balance sheet terms at 31 March 2009 totalled euro 60,986 million. The proportion of new cars of the BMW Group financed or leased by the Financial Services segment was 47.9%, 1.2 percentage points above the proportion recorded one year earlier. The proportion for the financial year 2008 had been 48.5%.

Workforce reduced


The number of employees decreased further during the period under review. The workforce was reduced in this period by 929 employees, of whom approximately 300 had signed voluntary severance contracts in the previous year and left the company during the first quarter of 2009. In addition, positions becoming free due to natural staff attrition were not filled. The BMW Group workforce comprised 99,112 employees worldwide at the end of the first quarter 2009 (31 March 2008: 106,887 employees), representing a 7.3% decrease on a year-on-year basis. Compared to 31 December 2008, the number of employees was decreased by 0.9%.


The BMW Group – an Overview
1st Quarter 2009 1st Quarter 2008 Change in %


Vehicle production
Automobiles units 267,637 405,595 -34.0
Motorcycles units 29,111 28,589 1.8

Deliveries to customers
Automobiles units 277,264 351,787 -21.2
Thereof:
BMW units 233,498 293,550 -20.5
MINI units 43,592 58,054 -24.9
Rolls-Royce units 174 183 -4.9
Motorcycles units 17,232 21,046 -18.1

Workforce at period-end 99,112 106,887 -7.3

Operating cash flow euro million 1,122 1,063 5.6

Revenues euro million 11,509 13,285 -13.4
Profit/loss before financial result (EBIT) euro million -55 827 -
Thereof:
Automobiles euro million -251 619 -
Motorcycles euro million 28 36 -22.2
Financial Services euro million 70 79 -11.4
Other Entities euro million 12 36 -66.7
Eliminations euro million 86 57 -
Profit/loss before tax euro million -198 641
Thereof:
Automobiles euro million -471 539 -
Motorcycles euro million 26 34 -23.5
Financial Services euro million 72 84 -14.3
Other Entities euro million 24 -5 -
Eliminations euro million 151 -11 -
Income taxes euro million 46 -154 -
Net profit/loss euro million -152 487 -
Earnings per share euro -0.23/-0.23 0.74/0.74 -


- Angela Stangroom-

Permanent-URL: http://www.automobilsport.com/finance-bmw-group-first-quarter-ebit-minus-euro-million-cost-management-strategies-economic-crisis---62766.html

07.05.2009 / MaP

More News

Integrierter Automobilkonzern angestrebt
07.05.2009
Die Volkswagen Aktiengesellschaft begrüßt die Entscheidung der Vertreter der Familiengesellschafter Porsche und Piëch, einen integrierten Automobilkonzern zu schaffen, in dem jede der dann zehn Marken ihre Eigenständigkeit behalten wird.Eine gemeinsame Arbeitsgruppe von Volkswagen und Porsche soll in den nächsten vier Wochen, unter maßgeblicher Einbin more >>
Ford gains retail share as Fusion sets sales record
01.05.2009
    * Ford gains retail share – for the sixth time in last seven months    * Ford Fusion sets monthly sales record and grows strength in mid-size car segment    * Ford hybrids combine to eclipse year-ago sales; Kelley Blue Book names Fusion Hybrid and Escape        Hybrid to Top 10 Green C more >>
Ford statement on Chapter 11 bankruptcy filling by Chrysler
30.04.2009
Today’s announcement that Chrysler is filing for Chapter 11 bankruptcy is an important development during this unprecedented period for the auto industry and the global economy.Our teams are monitoring the situation and have been working hard for months to ensure that the external environment and industry restructuring do not slow progress on our Ford transformation plan, whic more >>
AUDI AG establishes fully-owned subsidiary in China
30.04.2009
    * Company to be headed by Dietmar Voggenreiter    * Audi CEO Rupert Stadler: “The establishment of the new company represents another milepost in the        success story of AUDI AG in China”AUDI AG established Audi (China) Enterprise Management Co. Ltd., Beijing, on April 18, 20 more >>
Investitionsvolumen bei kontinentaleuropäischen Handelsimmobilien geht im ersten Quartal 2009 um ein Drittel zurück
30.04.2009
Investoren konzentrieren sich verstärkt auf Heimatmärkte – Erhebung von Jones Lang LaSalle umfasst Shopping Center, Fachmarktzentren und Factory OutletsEine Untersuchung von Jones Lang LaSalle beziffert das Transaktionsvolumen für Investitionen in kontinentaleuropäische Einzelhandelsimmobilien (oh more >>
Volkswagen Konzern behauptet sich in schwierigem Marktumfeld
30.04.2009
- Starke Position durch neue Modelle, steigende Marktanteile und solide Finanzen- Weltweiter Marktanteil steigt auf 11,0 (9,7) Prozent- Auslieferungen auf wichtigen Märkten höher als im Vorjahresquartal- Konzernbereich Automobile weist deutlich höheren Netto-Cash-flow ausNetto-Liquidität des Konzernbereich more >>
Škoda Auto finishes 1Q in the black
29.04.2009
Despite the ongoing worldwide economic crisis, the Czech Republic’s largest carmaker Škoda Auto was able to finish the first quarter in the black with an operating profit of approximately €28 million. In the period from January till March 2009, Škoda delivered a total of 143,079 cars to customers. Compared with the same period in th more >>
DAIMLER - Reduction of labor costs to safeguard employment
28.04.2009
    *      Agreement between management and Employee Council    *      Target of reducing labor costs by €2 billion achieved    *      No employee redundancies during the period of the agreement The management and the Employee Coun more >>
Daimler posts EBIT of minus €1,426 million in first quarter of 2009
28.04.2009
    *      Net loss of €1,286 million (Q1 2008: net profit of €1,332 million)    *      Revenue significantly below prior-year level at €18.7 billion    *      Decreases in unit sales and revenue expected for full-year 2009 & more >>
Audi with clearly positive operating profit in first quarter
27.04.2009
    * €363 million operating profit in the first quarter    * CFO Strotbek: “We remain confident of posting a significantly positive result again in 2009.”    * Audi is market leader in the premium segment with 4.6 percent market shareDespite the economic crisis, the Audi Group posted a clearl more >>
Ford Motor credit reports first quarter 2009 preliminary results
24.04.2009
Ford Motor Credit Company reported a net loss of $13 million in the first quarter of 2009, a decrease of $37 million from net income of $24 million a year earlier. On a pre-tax basis, Ford Motor Credit reported a loss of $36 million in the first quarter, compared with earnings of $32 million in the previous year.The decrease in pre-tax earnings primarily reflected lower volume and a more >>
Ford reports first quarter 2009 net loss of $1.4 billion+ ....
24.04.2009
... strenghtens balance sheet, launches key new vehicles    * Net loss of $1.4 billion, or $0.60 per share, for the first quarter of 2009; pre-tax operating loss of approximately $2 billion, excluding special items++    * Results for total company operations improved as compared with the fourth quarter of 2008    * Ended first more >>
Mitsubishi Motors announces production, sales and export figures for March 2009 and for the 2008 fiscal year
23.04.2009
Mitsubishi Motors Corporation today announced global production, as well as domestic sales and export figures for March 2009 and for the 2008 fiscal year.March 2009# Production: total and in JapanTotal global production came in at 58,895 units, a decline of 57.3 percent over March 2008 and the thirteenth consecutive monthly decreas more >>
Volkswagen Konzern erzielt im ersten Quartal Operativen Gewinn
22.04.2009
 Die Volkswagen Aktiengesellschaft hat im ersten Quartal des laufenden Geschäftsjahres 2009 einen Operativen Gewinn erwirtschaftet und die Liquidität erhöht. Das Operative Ergebnis belief sich auf 312 (1.311) Millionen EUR. Der Verkauf des brasilianischen Nutzfahrzeuggeschäfts trug mit rund 600 Millionen EUR zu diesem Ergebnis bei. Die Netto-Liquidität des Konzernb more >>
Reinhard Fleger wird neuer Vertriebsvorstand von Škoda Auto
17.04.2009
Fred Kappler übernimmt Leitung des weltweiten Vertriebs Original Teile des Konzerns  Reinhard Fleger (51), Vorstand für Vertrieb und Finanzen bei Volkswagen de Mexico, wurde mit Wirkung zum 1. Juni 2009 zum Vertriebs-vorstand von Skoda Auto in Mlada Boleslav berufen. Der heutige Vertriebsvorstand von Skoda, Fred Kappler (50), übernimmt die Leitung des more >>
Volkswagen Konzern erhöht weltweiten Marktanteil im ersten Quartal
17.04.2009
- Auch Kernmarke VW schneidet im Wettbewerbsvergleich besser ab- Konzernvertriebschef Wittig: „Junge und effiziente Modellpalette zahlt sich aus“Der Volkswagen Konzern hat im ersten Quartal seinen weltweiten Marktanteil trotz der anhaltend schwierigen Lage auf den Automobilmärkten ausgebaut und steigerte den Anteil von Januar bis M&au more >>
Ford Credit Canada Limited announces Canadian lease securitization transaction
16.04.2009
Canadian Road Leasing Company, a wholly owned subsidiary of Ford Credit Canada, today completed a lease securitization transaction, receiving proceeds of $0.6 billion (Canadian). A portion of the proceeds will be held in a reserve fund for the transaction.This lease securitization transaction included the lease of a portfolio of vehicles (subject to the existing retail leases) by Ca more >>
Audi has its best month ever in China
15.04.2009
    * Year-on-year sales growth of seven percent in March    * Audi A4L makes a very successful start on the market    * Audi will unveil the new generation Audi Q7 at the “Auto Shanghai 2009” showAUDI AG achieved its best monthly results yet for the Chinese market in March 2009. Including Hong Kon more >>
Ford appoints Pete Lawson vice-president of Government relations
15.04.2009
Ford Motor Company today announced the appointment of Pete Lawson as vice president of government relations, based in Washington D.C.Lawson comes to Ford from the U.S. Chamber of Commerce, where he serves as Vice President of Congressional and Public Affairs and is the Chamber’s chief lobbyist on legal reform, corporate governance, and financial services issues. The U.S. Chamb more >>
Daimler shareholders approve dividend of €0.60 per share
08.04.2009
Daimler AG’s shareholders approved the distribution of a dividend for the financial year 2008 of €0.60 per share (prior year: €2.00 per share) at the Annual Meeting held in Berlin on Wednesday. The total dividend distribution amounts to €556 million. The item of the agenda "Resolution on the Allocation of Unappropriated Profit" was approved with 99.82 percent of votes cast. more >>
Fahrzeugbauer Karmann muss Insolvenz anmelden
08.04.2009
Grund für den Insolvenzantrag sei die drohende Zahlungsunfähigkeit angesichts bevorstehender finanzieller Verpflichtungen, teilte das Unternehmen mit. Der höher als erwartet ausgefallene Umsatzrückgang habe dazu geführt, dass ein mit den Arbeitnehmervertretern vereinbarter Interessenausgleich und Sozialplan infolge der im Vorjahr bekanntgegebenen Umbaupläne more >>
Ford grows UK Market share again in March
08.04.2009
Strong consumer demand for Ford's exciting new product line-up helped to increase the blue oval brand's market share during March's changeover to the "09" plate. This continues a positive trend for Ford's UK share in exceptionally challenging market conditions. March 2009 highlights:●  Ford'sshare of theretail (non-fleet) car market increased b more >>
Porsche steigert Auftragseingang in Deutschland um 14,5 Prozent
07.04.2009
- Neue Modellgenerationen sorgen für Plus -  Cayenne Diesel erfolgreich angelaufen Die Dr. Ing. h.c. F. Porsche AG, Stuttgart, hat sich im ersten Quartal des Kalenderjahres 2009 auf ihrem Heimatmarkt Deutschland gut behauptet. Trotz Finanzmarktkrise und allgemeiner Kaufzurückhaltung liegt der Sportwagenhersteller beim Auftrag more >>
AUDI AG: Market shares up further in March
07.04.2009
    * Increased market shares in Western Europe and United States    * Record sales in China: Best monthly result of all time    * Head of Marketing and Sales Schwarzenbauer: “Order intake is increasing”AUDI AG continued to expand its market shares in March. In both the United States and Western Eu more >>
Scheich Hamdan bin Zayed Al Nahyan signalisiert weiteres Interesse an Opel-Beteiligung
06.04.2009
 In einem Exklusiv-Interview mit dem nordrhein-westfälischen Landessender NRW.TV hat Scheich Hamdan bin Zayed Al Nahyan, der stellvertretende Premierminister der Vereinigten Arabischen Emirate, bestätigt, dass es weiterhin ein Interesse an einer Beteiligung der Emirate am Autobauer Opel gibt und auch weitere Gespräche geführt werden.   Es ist eine more >>
Marçal Farreras, new director of SEAT España
06.04.2009
Forty-eight-year-old Barcelona-born Marçal Farreras has been appointed the new director of SEAT España, with effect as of May 1st.He takes over from the previous incumbent Pedro Catena, who goes on to other responsi more >>
Škoda Auto and Volkswagen open a joint manufacturing plant in India
05.04.2009
Škoda Auto is extending the scope of its Indian-based production – together with Volkswagen, the company has today officially opened a new joint manufacturing plant in Pune, India. Starting one year earlier than planned, the local production of the Škoda Fabia is going to start in May 2009.Škoda Auto has been manufacturing vehicles in India since 2001 - it more >>
Suzuki Automobile auf der Überholspur
05.04.2009
Marktanteil von Suzuki Automobile steigt im ersten Quartal 2009 mit 18.762 verkauften Fahrzeugen auf 2,2 Prozent - Swift bleibt der Bestseller -  Der neue Suzuki Alto startet im April Dank der staatlichen Umweltprämie verzeichnet der gesamte Klein- und Kleinstwagenmarkt ein deutliches more >>
Porsche sieht erste Anzeichen für eine Stabilisierung in Nordamerika
01.04.2009
Die Dr. Ing. h.c. F. Porsche AG, Stuttgart, hat sich im März 2009 in Nordamerika weiterhin in einem schwierigen Marktumfeld bewegt. Mit 1.921 Fahrzeugen lag die Anzahl der Auslieferungen an Kunden in Nordamerika um 27 Prozent unter dem Vorjahreswert, davon entfielen 1.749 Fahrzeuge auf die USA. Die rückläufigen Verkäufe verdeutlichen, dass der US-amerikanische Automobilmarkt more >>
Rolls-Royce welcomes new Director of Global Communications
31.03.2009
Richard Carter has joined Rolls-Royce Motor Cars as Director of Global Communications. He will be based at the company’s head office and manufacturing plant at Goodwood and will have responsibility for the brand& more >>
Porsche weist ein deutlich gestiegenes Ergebnis aus
31.03.2009
Hoher Ergebnisbeitrag aus Optionsgeschäften Die Porsche Automobil Holding SE, Stuttgart, weist nach den ersten sechs Monaten des laufenden Geschäftsjahres 2008/09 (1. August 2008 bis 31. Januar 2009) ein Ergebnis vor Steuern von 7,34 Milliarden Euro aus; im Jahr zuvor hatte der vergleichbare Wert 1,66 Milliarden Euro betragen. Verantwortlich für diese more >>
Porsche sichert sich Kreditlinie über zehn Milliarden Euro
25.03.2009
Verhandlungen erfolgreich beendetDie Porsche Automobil Holding SE, Stuttgart, hat eine neue Kreditlinie im Volumen von zehn Milliarden Euro abgeschlossen, mit der ein Kredit in gleicher Höhe abgelöst wird. Der Kreditrahmenvertrag erlaubt es Porsche, das Volumen in den nächsten Wochen auf bis zu 12,5 Milliarden Euro auszubauen. Angesichts des e more >>
Preliminary 2009 Ford proxy details annual meeting...
25.03.2009
.... shareholder proposals, compensation reductionsFord Motor Company [NYSE: F] today filed with the U.S. Securities and Exchange Commission a preliminary notice regarding its 2009 Annual Meeting of Shareholders.Ford is filing a preliminary proxy statement because of a company proposal seeking shareholder approval to issue common stock related to the com more >>
Honda Sets All-Time February Record for Auto Production in China
24.03.2009
Honda Motor Co., Ltd. announced a summary of automobile production, Japan domestic sales, and export results for the month of February 2009.<Production>Production in Japan for the month of February 2009 experienced a year-on-year decrease for the fourth consecutive month (since November 2008).Production in regions outside of Japan ex more >>
Mitsubishi Motors announces production, sales and export figures for February 2009
24.03.2009
Mitsubishi Motors Corporation today announced global production, as well as domestic sales and export figures for February 2009.# Production: total and in JapanTotal global production came in at 45,048 units, a decline of 65.0 percent over February 2008 and the twelfth consecutive monthly decrease since March. Production volume in Japan at 20,138 units was dow more >>
Weak Pound drives Ford to increase UK prices
24.03.2009
The continued weakness of the £ against the Euro, which this week edged even closer to parity, has forced Ford to increase the price of all its models within the UK from the start of April 2009. The price increase, an average of 3.75 per cent, will apply to all new orders received after 31st March."We are reacting to the continued decline of the £ against the Euro", said more >>
Abu Dhabi’s Aabar Investments to become a major Daimler shareholder
23.03.2009
   *       Daimler increases share capital by 10% with exclusion of subscription rights of existing             shareholders    *      After acquiring all new shares, Aabar will hold 9.1% of the new share capital    *  more >>
Skoda Auto's deliveries in 2008
23.03.2009
Strong crown takes its toll on financial resultsSkoda Auto Group’s 2008 financial results calculated under the International Financial Reporting Standards (IFRS) have been released today (February 23, 2009) at a press conference held in Prague.The Skoda Auto Group is made up of the parent company SKODA AUTO a.s. and its fully consolidated subsidiar more >>
Difficult fiscal year 2008 for SEAT
19.03.2009
•    SEAT brand operating result in Volkswagen Group consolidation of -78 million Euros•    SEAT, S.A. operating result of +44 million Euros•    Compact class rejuvenated and model range extended to mid-class segment•    Further vehicle from Martorell for new segment announced more >>
2001-2021 copyright automobilsport.com