BMW Group is paving the way for continued success in the future with a high level of expenditure on new technologies and models and investments in its production network, shareholders were told at the annual general meeting on Tuesday (14 May, 2013).
“In this way, we are preparing for the company’s next phase of growth and making the BMW Group more competitive for the future. Anyone who wishes to shape the mobility of tomorrow must make the necessary investments today,” management board chairman Norbert Reithofer said in Munich.
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The new factory in Brazil will produce up to 30,000 vehicles per year after production starts in 2014, with EUR200m earmarked for the project. In 2012, the group had 29 production locations in 14 countries.
Development costs for new technologies and vehicle concepts will also continue to rise in 2013, with 11 new group models scheduled for launch in 2013 alone. By the end of 2014, about 25 new models will have been added to the range, 10 completely new.
With a view to global sales development, the company will continue its strategy of avoiding over-reliance on a single market or region.
“We aim to maintain a good balance of sales between the three major regions of the world: Europe, the Americas and Asia,” said Reithofer.
Last year, the US accounted for 18.9% of sales, China 17.7% and Germany 15.6%.
Electro-mobility will be in the spotlight for the group this year. The i3, which is designed for zero-emission driving in the urban environment and will come onto the market by the end of the year, underscores the group’s role as a leading innovator in the premium segment, Reithofer said.
“Later this year, we will start the revolution in our industry – and BMW i will give the mobility of tomorrow a face. The future belongs to those who dare to venture. We cannot ignore the need for new approaches – especially when circumstances are changing,” Reithofer said.
“Customers are waiting for attractive options – options which we can deliver.”
Targets for full year 2013 confirmed
After a record-breaking 2012, the group reaffirmed its ambitious targets for the full year amid a persistently difficult and volatile economic environment.
“We are aiming for a new sales volume record at group level and a group profit before tax for 2013 on a similar scale to 2012,” said Reithofer.
Despite the additional costs of new model launches and expanded manufacturing, the automotive segment continues to forecast an EBIT margin of between 8% and 10% for the current year. This range is also seen as a sustainable EBIT margin beyond 2013. However, depending on political and economic developments, actual margins could end up being above or below the targeted range.
The Financial Services segment is also expected to produce another strong performance and remains committed to achieving a return on equity of at least 18%.
Q1 2013
The group booked first quarter revenues down 4.1% to EUR17,546m. With higher expenditure on new technologies, increased personnel expenses and “challenging market conditions worldwide”, EBIT dipped 4.5% to EUR2,039m, nonetheless the second-highest result for the group in a first quarter. EBIT margin was 11.6%.
Group net profit was down 3% to EUR1,312m.
Vehicles deliveries worldwide rose 5.3% to 448,200 units.
