BMW released their financial results for 2013 and it showed new highs for sales volume and earnings. This is BMW Group’s fourth straight record for sales and comes despite challenging economic conditions worldwide. BMW Motorrad, the motorcycle division, saw increases in sales volume, revenues and earnings in 2013. Revenues edged up by 0.9% to € 1,504 million (about $2,092 million in US dollars) from € 1,490 million ($2,073 million) in 2012. Earnings before interest and taxes (EBIT), rose to € 79 million ($110 million) from € 9 million ($12.5 million) in 2012 and profit before tax to € 76 million ($105.8 million) from € 6 million ($8.4 million) in 2012. Segment earnings in 2012 were impacted by expenses incurred in realigning its motorcycles business including the sale of Husqvarna. In 2011 for comparison, EBIT was € 45 million ($62.6 million) and profit before tax was € 41 million ($57.1 million). Despite the challenging sales market for motorcycles, a new sales record was set for 2013 with 115,215 motorcycles and scooters being delivered to customers worldwide (2012: 106,358 units; +8.3%).
Group revenues for 2013 totaled € 76,058 million (2012: € 76,848 million; -1.0%) and were thus marginally down on the previous year, with the difference due to exchange rate developments. Group profit before tax (EBT) increased by 1.4% to a new high of € 7,913 million (2012: € 7,803 million) despite increased investment in new technologies, greater competition and higher personnel costs. Group net profit rose by 4.5% to the new record value of € 5,340 million (2012: € 5,111 million). The BMW Group increased deliveries to customers by 6.4% to 1,963,798 units (2012: 1,845,186 units), with all three brands registering all-time highs.
Automotive segment revenues rose by 0.6% to € 70,629 million (2012: € 70,208). Influenced by the above-mentioned factors – high expenditure for new technologies, increasing the product range and market launch costs as well as increased competition – EBIT decreased to € 6,657 million (2012: € 7,599 million; -12.4%). The EBIT margin came in at 9.4% and was thus in the upper half of the targeted corridor of between 8 and 10%. Segment profit before tax amounted to € 6,561 million (2012: € 7,170 million; -8.5%).
The BMW brand retained the pole position in the premium segment in 2013, with worldwide sales volume up by 7.5% to 1,655,138 units (2012: 1,540,085 units). The BMW 3 Series remained a major source of growth in 2013, with sales rising by 23.0% to 500,332 units (2012: 406,752 units). MINI similarly set a new sales volume record in 2013, with worldwide sales edging up by 1.2% to 305,030 units (2012: 301,526 units). The new generation of the MINI will make its appearance in the showrooms from spring 2014 onwards. Rolls-Royce Motor Cars remained market leader in the ultra-luxury segment in 2013 and, with sales of 3,630 units (2012: 3,575 units; +1.5%), achieved a new sales volume record for the fourth year in a row.
The BMW Group recorded sales volume growth on nearly all continents in the past year. At 859,546 units, sales in Europe – the BMW Group’s largest sales region – were almost at their previous year’s level, despite challenging business conditions in some countries (-0.7%). For the first time, the number of vehicles sold by the BMW Group in Asia exceeded the half-million mark. Sales in the region grew by 17.3% to 578,678 units, helped by a 19.7% rise on the Chinese mainland to 391,713 units. The BMW Group continued to perform well in the Americas region, with deliveries to customers up by 9.0% to 463,822 units, including 376,636 units sold in the USA (+8.1%).
The Financial Services segment continued to perform well during the past year. Revenues increased by 1.7% to € 19,874 million (2012: € 19,550 million). Profit before tax amounted to € 1,639 million (2012: € 1,561 million), 5.0% ahead of the previous year. The number of new contracts within the credit financing and leasing lines of business grew worldwide by 9.7% to 1,471,385 contracts (2012: 1,341,296 contracts). The portfolio of lease and financing contracts in place with dealers and retail customers at December 31, 2013 climbed by 7.4% to a total of 4,130,002 contracts (2012: 3,846,364 contracts).
BMWs workforce increased with a record number of apprentices hired. In 2013, the BMW Group trained more young people than ever before, employing a total of 4,445 apprentices worldwide. The size of the workforce increased by 4.2% in 2013, reflecting both dynamic growth in business volumes and the rapid pace of innovation. At the end of the reporting period, the BMW Group had a worldwide workforce of 110,351 employees (December 31, 2012: 105,876 employees). The increase is due to the growing need for engineers and skilled workers in order to keep pace with continued strong demand on the one hand and to push ahead with innovations and develop new technologies on the other.
The BMW Group – an overview
|2013||2012*||Change in %|
|Deliveries to customers||1,963,798||1,845,186||6.4|
|Financial Services||€ million||19,874||19,550||1.7|
|Other entities||€ million||6||5||20.0|
|Profit before financial result||€ million||7,986||8,275||-3.5|
|Financial Services||€ million||1,643||1,558||5.5|
|Other entities||€ million||44||58||-24.1|
|Profit before tax||€ million||7,913||7,803||1.4|
|Financial Services||€ million||1,639||1,561||5.0|
|Other entities||€ million||164||3||-|
|Income taxes||€ million||-2,573||-2,692||4.4|
|Net profit||€ million||5,340||5,111||4.5|
|Earnings per share2||€||8.10/8.12||7.75/7.77||4.5/4.5|
|Dividend per share of common/preferred stock||€||2.60/2.62||2.50/2.52||-|
* Prior year figures partially adjusted in accordance with the revised IAS 19
1 Figures exclude dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time working arrangements and low wage earners
2 Earnings per share of common /preferred stock