BMW Motorrad Sales Up 7.7% in October

BMW Motorrad Sales Up 7.7% in October

In October, BMW Motorrad sold 7.7% more vehicles than in the same month last year (7,596 units versus 7,050).  For the year up through October, 93,540 motorcycles and maxi scooters were sold which is nearly even (-0.4%) with the 93,942 sold during the same period last year. BMW Motorrad has been rebounding in the last few months from a dip in sales mid-year before the introduction of new motorcycle models and the maxi-scooters.

With a total of 8,329 units, Husqvarna Motorcycles supplied 22.9% more motorcycles from January up to and including October than in the previous year (6,775 units). In October, 973 vehicles (+44.2%) were supplied to the Husqvarna dealer network.

Maxi-scooters, such as this C650GT, are gaining popularity in Europe.

Heiner Faust, BMW Motorrad Head of Sales and Marketing, said, “At the end of the 2012 season, the motorcycle markets are showing considerable variations. Due to economic conditions, development of the major markets Italy and Spain has been much weaker than expected. The markets of Northern and Eastern Europe have also been weaker than last year. However, we have been able to make up for this negative development with excellent sales in the USA, Brazil, other Latin American markets, Asia and Russia. Germany remains the single most important market by a wide margin. As of October, sales here are at the same high level as last year. In spite of difficult market developments, we are generally confident of being able to sell more vehicles by the end of the year than in the record-breaking previous year. This is an impressive result in view of the model change in connection with the volume model R1200GS. BMW Motorrad will now start supplying the maxi scooters C650GT and C600 Sport overseas, too. Customer interest in our scooters has grown constantly in Europe since its market launch in the summer. And this December we will start supplying the new BMW HP4. Demand for our top-class supersports racer has clearly surpassed expectations.”

The new Husqvarna TR650 Terra and TR650 Strada are helping increase sales.

BMW also released their third quarter financial results. In the third quarter, the Motorcycles segment revenues were 7.2% higher at €358 million (2011: €334 million) than last year. But a loss before financial result (EBIT) of €3 million (2011: loss of €16 million) was recorded, while the loss before tax amounted to €4 million (2011: loss of €17 million). For the year through three quarters, revenues increased by 3.0% to €1,216 million (2011: € 1,181 million). Nine-month EBIT improved by 32.3% to €82 million (2011: €62 million), profit before tax by 33.3% to €80 million (2011: €60 million).

Record Success for the BMW Group

In the third quarter BMW Group continued to perform well despite the difficult market conditions. Sales volume, revenues and earnings figures were all record highs for a third quarter. Revenues during the three-month period from July to September rose by 13.7% to €18,817 million (2011: €16,547 million). The profit before financial result (EBIT) increased by 13.8% to €2,004 million (2011: €1,761 million). Third-quarter profit before tax (EBT) improved by 17.6% to €1,987 million (2011: €1,689 million). Net profit for the period came in 16.0% higher at €1,289 million (2011: € 1,111 million). The total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers during the third quarter increased by 9.0% to 434,963 units (2011: 399,218 units).

Revenues for the first nine months of the year climbed by 11.6% to €56,312 million (2011: €50,472 million). EBIT for the period improved to €6,406 million (2011: €6,358 million; +0.8%), representing an EBIT margin of 11.4%. Nine-month profit before tax amounted to €6,040 million, almost identical to the previous year’s high level (2011: €6,044 million). Adjusted for exceptional items in the current and previous year, Group earnings would have risen by approximately 7.2%. Profit after tax for the period from January to September totalled €3,915 million (2011: €4,028 million). The total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers up to the end of September climbed by 8.3% to a new high of 1,335,502 units (2011: 1,232,584 units).

The Automotive segment revenues increased by 12.0% in the third quarter to €17,187 million (2011: € 15,344 million). EBIT amounted to €1,649 million (2011: € 1,819 million), giving an EBIT margin of 9.6%. Profit before tax amounted to €1,703 million (2011: €1,745 million). The sales volume increase achieved in the third quarter had a positive impact on reported earnings for the period. At the same time, there were also a number of factors, such as increased expenditure for development costs and new technologies and intense competition, that are also reflected in the figures.

In the first nine months, revenues rose by 9.3% to €50,712 million (2011: €46,391 million). EBIT amounted to €5,548 million (2011: €5,935 million), resulting in an EBIT margin for the Automotive segment 10.9%. Profit before tax for the nine-month period finished at €5,274 million (2011: €5,647 million). Nine-month free cash flow for the Automotive segment totalled €3,840 million.

BMW brand sales grew worldwide by 8.6% in the first nine months to a new high of 1,109,962 units (2011: 1,021,927 units), underlining the brand’s leading position worldwide in the premium segment. BMW was not only the leader in terms of sales volume, it was also ranked number one in terms of brand value (according to the market research institute Millward Brown, BMW is the most valuable brand worldwide within the automobile sector) and customer satisfaction (according to the ADAC in Germany, BMW is the brand with the most satisfied customers).

The total number of MINI brand vehicles sold during the first nine months of the year increased by 7.2% to 223,214 units (2011: 208,216 units). Rolls-Royce continues to perform successfully in the super-luxury segment. With 2,326 units sold worldwide during the period from January to September (2011: 2,441 units; -4.7%), nine-month sales volume remained at a similarly high level to the previous year.

Nine-month sales figures were increased in almost all of the regions in which the BMW Group operates. Despite highly unfavorable business conditions in some parts of Europe, in particular the region’s southern countries, sales volume overall edged up by 0.8% to 640,207 units. In North America, the number of cars sold rose by 7.4% to 264,207 units, including 235,487 units (+7.1%) sold in the USA.

The BMW Group also remained on a growth course in Asia, selling 359,103 units (+27.1%) during the period from January to September. Sales in China during the nine-month period surged by 33.3% to 237,650 units. In Japan, the number of cars sold rose by 21.5% to 42,038 units. The BMW Group strives to achieve an appropriate balance in sales volume between Europe, North America and Asia, so as not to become overduly dependent on any one market.

The Financial Services segment continued to perform well in the third quarter 2012, with revenues up by 15.0% to €4,916 million (€4,276 million) and profit before tax up by 20.1% to €425 million (2011: €354 million). Nine-month segment revenues grew by 15.4% to €14,582 million (2011: €12,640 million). Segment profit before tax for the period amounted to €1,290 million (2011: 1,527 million; -15.5%).

The number of lease and financing contracts in place with dealers and retail customers at 30 September 2012 grew by 5.4% to a total of 3,745,760 contracts. The number of new financing and lease contracts signed in the period from January to September rose by 10.9% to 979,322 contracts.

The BMW Group’s workforce increased during the period up to September 30, 2012. The number of employees worldwide rose by 4.3% to 104,668 at the end of the reporting period (September 30, 2011: 100,389 employees). The BMW Group continues to recruit engineers and skilled workers in order to keep pace with on-going strong demand for BMW Group vehicles, to push ahead with innovations and develop new technologies. 1,376 young people – 1,200 of them in Germany – started their vocational training with the BMW Group at the beginning of the new training year. The number of trainees in Germany was accordingly increased by more than 10%.

One Response to BMW Motorrad Sales Up 7.7% in October

  1. Valerie Thompson has done a wonderful job of promoting the S1000RR through her land speed records during 2012. She really seems to enjoy promoting BMW, met her at the BMW MOA event in Sedalia, great spokeswoman for the brand.

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