BMW Financials Set Half-Year Records

BMW Financials Set Half-Year Records

BMW reported its second-quarter financial results this week. The motorcycle division saw revenues grow by 11.2% to € 528 million (about $706 million) from € 475 million ($635 million) in 2013. Earnings before interest and tax (EBIT) increased 19.6% to € 55 million ($73.6 million) from € 46 million ($61.5 million) in 2013 and profit before tax rose 20.0% to € 54 million ($72.2 million) from € 45 million ($60.2 million) in 2013. The number of motorcycles sold increased by 5.1% to a new second-quarter record of 42,259 units (2013: 40,209 units).

For the first half of 2014, BMW Motorrad revenues increased by 9.8% to € 1,000 million ($1,337 million) from € 911 million ($1,218 million) in 2013. EBIT rose by 22.7% to € 119 million ($159 million) from € 97 million ($129.7 million) in 2013 and profit before tax grew 23.2% to € 117 million ($156.5 million) from € 95 million ($127 million) in 2013. Sales volume for the six-month period increased by 9.3% to 70,978 units (2013: 64,941 units). With these figures, BMW Motorrad recorded the best six-month period in its 90-year history of motorcycle manufacturing.

BMW expects their motorcycles division to continue to perform well over the year as a whole. Despite difficult conditions on the international motorcycle market, sales are forecast to be up slightly on the previous year (2013: 115,215 units).

BMW-R1200GS

BMW R1200GS

BMW 3-Series Sedan.

BMW 3-Series Sedan.

The BMW Group also increased sales volume, revenues and Group earnings in both the second quarter and the first half of 2014. Group revenues increased in the second quarter by 1.8% to reach € 19,905 million (2013: € 19,552 million) for this three-month period. EBIT rose by 26.0% to € 2,603 million (2013: € 2,066 million) while Group profit before tax climbed 30.9% to a new high of € 2,660 million (2013: € 2,032 million). The pre-tax return on sales was 13.4% (2013: 10.4%). Group net profit climbed by 27.2% to € 1,771 million (2013: € 1,392 million).

The total number of BMW, MINI and Rolls-Royce brand cars delivered to customers worldwide increased by 5.3% in the second quarter to a new record of 533,187 units for this three-month period (2013: 506,321 units).

Group revenues for the first six-months increased year-on-year by 2.8% to € 38,140 million (2013: € 37,098 million). EBIT rose by 14.4% to € 4,693 million (2013: € 4,104 million) and profit before tax climbed 19.6% to € 4,826 million (2013: € 4,035 million). Group net profit increased by 19.6% to € 3,233 million (2013: € 2,704 million). BMW Group sales volume increased 6.9% to 1,020,211 units in the first half of the year (2013: 954,521 units). It’s the first time more than one million vehicles have been sold in the first half of the year. With this performance, the BMW Group was able to maintain its position as the world’s leading premium car company.

The BMW brand recorded a new sales high with deliveries in the second quarter up by 8.3% to 458,088 units (2013: 422,844 units) and in the first six-month period by 10.2% to 886,347 units (2013: 804,248 units). As expected, sales of MINI brand vehicles decreased year-on-year as a result of the MINI Hatch model change, both in the second-quarter with sales of 74,028 units (2013: 82,644 units; -10.4%) and in the first half-year period with sales of 131,896 units (2013: 148,798 units; -11.4%). Rolls-Royce Motor Cars increased worldwide sales by 28.6% to 1,071 units (2013: 833 units) in the second quarter and by 33.4% to 1,968 units (2013: 1,475 units) in the first half of the year.

The Financial Services division saw its revenues increase by 1.9% to € 5,155 million (2013: € 5,058 million). Profit before tax was € 458 million (2013: € 467 million; -1.9%). Six-month revenues rose 1.6% to € 10,045 million (2013: € 9,888 million). Profit before tax stood at € 918 million (2013: € 916 million; +0.2%).

The size of the BMW Group workforce at June 30, 2014 was 5.3% higher than at the same time last year. Overall, the BMW Group had a worldwide workforce of 112,500 employees (2013: 106,870 employees). The increase is attributable to the growing need for engineers and skilled workers who are required to keep pace with rising demand for vehicles and to develop new technologies.

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