BMW Motorrad Sales Up 21% in July, Records Best Half-Year Revenues in its History

BMW Motorrad Sales Up 21% in July, Records Best Half-Year Revenues in its History

BMW released July sales numbers as well as their second quarter financials last week. The motorcycle division saw global sales continued to grow in July with a total of 14,168 motorcycles and maxi-scooters delivered to customers — an incredible 21.5% increase. Deliveries for the first seven months totaled 92,586, an increase of 12.0% compared with the same period last year. Both monthly and year-to-date figures set new sales records for BMW Motorrad.

BMW-R1200GS
The BMW R1200GS remains the best selling model worldwide.

BMW Motorrad USA posted their second best July ever with 1,445 sales. This figure is 11.1% more than the 1,301 motorcycles sold in July 2014. The R1200GS was the best-selling model in July with 210 units (+30%), and in combination with the new-for-2015 R1200RS, grew boxer model retails by 56.3% to 702 units compared to 449 in July of 2014. With 196 retails (+44%), the new S1000RR helped post S-Series growth of 22.2% with sales of 336 units compared to 275 this time last year.

BMW Motorrad Canada reported its best July on record with sales of 319 motorcycles. These strong sales figures resulted in a 77.2% increase over July, 2014. For the year so far, 1,463 motorcycles have been sold in Canada which is an increase of 11.2% compared to the same period last year. The R1200RT led the way in July, with the R1200GSA and F700GS also reporting strong results.

BMW Group saw sales of BMW, MINI and Rolls-Royce brand automobiles totaled 173,195 worldwide in July, a new high for the month and an increase of 5.6% compared with the same period last year. A new record was also achieved for the first seven months of the year with a total of 1,272,953 vehicles delivered to customers, an increase of 7.5%.

In July, BMW brand deliveries increased by 5.8% to total 147,513. Sales for the year-to-date climbed 5.2% to 1,079,563. A total of 25,416 MINIs were delivered to customers around the world in July, an increase of 4.8%. Year-to-date sales climbed 22.5% to total 191,355.

BMW Group sales in/up to July 2015 at a glance

  In July 2015 Compared with previous year Up to/including July 2015 Compared with previous year
BMW Group Automobiles 173,195 +5.6% 1,272,953 +7.5%
BMW 147,513 +5.8% 1,079,563 +5.2%
MINI 25,416 +4.8% 191,355 +22.5%
BMW Motorrad 14,168 +21.5% 92,586 +12.0%

 

Second Quarter Financials

BMW’s motorcycles segment registered its best quarter to date. Segment revenues for the the period from April to June grew by 17.8% to € 622 million (2014: € 528 million) on the back of strong sales volumes and a high-value model mix. EBIT improved to € 112 million (2014: € 55 million; +103.6%), similar to profit before tax, which also increased to € 112 million (2014: € 54 million; +107.4%). These earnings and sales volume figures all marked new records for a second quarter. The upward trend in business has been boosted by the new BMW R1200R, R1200RS, S1000RR, S1000XR and F800R models.

BMW Motorrad also produced its best-ever first half-year performance in more than 90 years of operations. Segment revenue for the six-month period rose by 18.9% to € 1,189 million (2014: € 1,000 million). EBIT improved to € 227 million (2014: € 119 million; +90.8%). Profit before tax showed a similar picture, with a jump of 93.2% to € 226 million (2014: € 117 million).

The BMW Group continued to perform well throughout the second quarter 2015. Group revenues and sales volume figures reached new heights for the period from April to June, with the Motorcycles segment raising its profit before tax to a new record level. Group profit before financial result (EBIT) for the six-month period exceeded € 5 billion for the first time.

Second-quarter group revenues rose by 20.2% to € 23,935 million (2014: € 19,905 million). With a tailwind of favorable currency factors, this growth was even more pronounced than the underlying sales volume increase achieved by the BMW Group. Higher personnel costs, increased expenditure on new product start-ups and a change in the model mix (generally involving a higher proportion of compact vehicles) were the main reasons for a minor dip in the profit before financial result (EBIT) below the previous year’s outstanding level. EBIT amounted to € 2,525 million (2014: € 2,603 million; -3.0%), while the profit before tax (EBT) came in at € 2,582 million, slightly below the € 2,654 million reported one year earlier (-2.7%). In the second quarter of 2014, the BMW Group achieved its best-ever pre-tax profit to date. At € 1,749 million, net profit for the three-month period also came extremely close to the previous year’s figure (2014: € 1,767 million; -1.0%).

Group revenues for the six-month period climbed by 17.6% to € 44,852 million (2014: € 38,140 million), with currency factors partially fuelling the increase, in contrast to the previous year. Overall, profit before financial result (EBIT) rose by 7.5% for the six-month period to € 5,046 million (2014: € 4,693 million), thus exceeding the € 5-billion mark for this period for the first time. Despite the lower result from equity-accounted investment, partly reflecting the ongoing normalisation of the Chinese market, profit before tax (EBT), at € 4,851 million, nevertheless surpassed the previous year’s record figure (2014: € 4,813 million; +0.8%), This outcome was achieved despite the fact that fair value losses on financial derivatives held down this key performance indicator. Net profit for the six-month period amounting to € 3,265 million was also slightly up on the previous year’s record figure (€ 3,225 million; +1.2%). The total number of cars sold by the BMW Group during the first half of the year rose by 7.8% to 1,099,748 units (2014: 1,020,211 units).

Second-quarter revenues of the Automotive segment rose by 17.0% to € 21,650 million (2014: € 18,504 million). EBIT declined to € 1,819 million (2014: € 2,161 million; -15.8%), reflecting the challenging business conditions prevailing in individual markets, driven in particular by ever-fiercer competition. The earnings performance was also influenced by changes in the model mix, with compact vehicles accounting for a higher proportion than one year earlier. Segment result before tax amounted to € 1,844 million (2014: € 2,250 million; -18.0%). The EBIT margin came in at 8.4% (2014: 11.7%) and hence within the target range of 8 to 10%. The pre-tax return on sales was 8.5% (2014: 12.2%).

Compared with the previous year, Automotive segment revenues for the six-month period were 15.6% higher at € 40,543 million (2014: € 35,063 million), reflecting the sales volume performance and favorable currency factors. EBIT was slightly lower at € 3,613 million (2014: € 3,741 million; -3.4%). The EBIT margin finished at 8.9% (2014: 10.7%) and hence within the target range of 8 to 10%. Profit before tax for the six-month period amounted to € 3,478 million (2014: € 3,893 million; -10.7%). The pre-tax return on sales was 8.6% (2014: 11.1%).

 

The BMW Group – an overview 2nd quarter
2015
2nd quarter
2014*
Change in %
Sales volume
Automotive units 573,079 533,187 7.5
Thereof:
BMW units 480,465 458,088 4.9
MINI units 91,626 74,028 23.8
Rolls-Royce units 988 1,071 -7.7
Motorcycles units 47,048 42,259 11.3
Workforce1 119,489 112,500 6.2
Operating cash flow Automotive segment € million  3,008 1,530 96.6
Revenues € million 23,935 19,905 20.2
Thereof:
Automotive € million 21,650 18,504 17.0
Motorcycles € million 622 528 17.8
Financial Services € million 6,154 5,155 19.4
Other Entities € million 1 1
Eliminations € million -4,492 -4,283 -4.9
Profit before financial result (EBIT) € million 2,525 2,603 -3.0
Thereof:
Automotive € million 1,819 2,161 -15.8
Motorcycles € million 112 55
Financial Services € million 503 459 9.6
Other Entities € million 94 16
Eliminations € million -3 -88
Profit before tax (EBT) € million 2,582 2,654 -2.7
Thereof:
Automotive € million 1,844 2,250 -18.0
Motorcycles € million 112 54
Financial Services € million 496 452 9.7
Other Entities € million 144 25
Eliminations € million -14 -127 89.0
Income taxes € million -833 -887 6.1
Net profit € million 1,749 1,767 -1.0
Earnings per share2 2.66/2.67 2.68/2.69 -0.7/-0.7

*Prior year figures partially adjusted in accordance with IAS 8

1 figures exclude dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time arrangements and low wage earners
2 earnings per share of common stock/preferred stock

 

 

The BMW Group – an overview January to June 2015 January to June 2014* Change in %
Sales volume
Automotive units 1,099,748 1,020,211 7.8
Thereof:
BMW units 932,041 886,347 5.2
MINI units 165,938 131,896 25.8
Rolls-Royce units 1,769 1,968 -10.1
Motorcycles units 78,418 70,978 10.5
Workforce1 119,489 112,500 6.2
Operating cash flow Automotive segment € million 4,838 3,472 39.3
Revenues € million 44,852 38,140 17.6
Thereof:
Automotive € million 40,543 35,063 15.6
Motorcycles € million 1,189 1,000 18.9
Financial Services € million 12,212 10,045 21.6
Other Entities € million 3 3
Eliminations € million -9,095 -7,971 -14.1
Profit before financial result (EBIT) € million 5,046 4,693 7.5
Thereof:
Automotive € million 3,613 3,741 -3.4
Motorcycles € million 227 119 90.8
Financial Services € million 1,058 924 14.5
Other Entities € million 134 26
Eliminations € million 14 -117
Profit before tax (EBT) € million 4,851 4,813 0.8
Thereof:
Automotive € million 3,478 3,893 -10.7
Motorcycles € million 226 117 93.2
Financial Services € million 1,055 905 16.6
Other Entities € million 121 82 47.6
Eliminations € million -29 -184 84.2
Income taxes € million -1,586 -1,588 0.1
Net profit € million 3,265 3,225 1.2
Earnings per share2 4.96/4.97 4.90/4.91 1.2/1.2

*Prior year figures partially adjusted in accordance with IAS 8

1 figures exclude dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time arrangements and low wage earners
2 earnings per share of common stock/preferred stock

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