After a record-breaking 2012, BMW Group says its outlook for the current 12-month reporting period is cautiously optimistic, based on ambitious targets set amid a “persisting difficult and volatile economic environment”.
“We are aiming to achieve a further rise in unit sales in the current year and hence a new sales volume record”, said Norbert Reithofer, Chairman of the Board of Management of BMW AG, at the Annual Accounts Press Conference in Munich today.
Go deeper with GlobalData
“The past year has been the most successful year in the BMW Group’s corporate history, with new records achieved for sales volume, revenues, and group earnings,” said Reithofer.
BMW Group revenues increased year-on-year by 11.7% to reach a new high of EUR76,848 million (2011: EUR 68,821 million). Despite greater expenditure on new technologies and increased personnel costs, earnings also climbed to new record levels, with profit before financial result (EBIT) up by 3.5% to EUR8,300 million (2011: EUR8,018 million), profit before tax (EBT) up by 5.9% to EUR7,819 million (2011: EUR7,383 million) and Group net profit up by 4.4% to EUR5,122 million (2011: EUR4,907 million).
The total number of BMW, Mini and Rolls-Royce brand vehicles delivered to customers worldwide in 2012 rose by 10.6% to a new high of 1,845,186 units (2011: 1,668,982 units).
BMW said that strong demand for its products means that it will continue to invest in boosting capacity in 2013, thus enabling it to remain successfully on course. Development costs for new technologies and vehicle concepts will also continue to rise. 2013 alone will see the launch of eleven new models, BMW says. By the end of 2014, some 25 new models will have been added to the range, ten of them totally new models.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Due to high levels of expenditure for new technologies and models as well as investment in the production network, we expect to report group profit before tax on a similar scale to the year 2012,” Reithofer said.
Despite the additional costs, BMW said its automotive operations are forecast to hit an EBIT margin of between 8% and 10% for the current year. This corridor is also seen as a sustainable EBIT margin for the time beyond 2013, BMW said. However, depending on political and economic developments, actual margins could end up being above or below the targeted range the company acknowledged.
BMW said that group profit before tax doubled during the period between 2007 and 2012. At 10.9%, the Automotive segment’s EBIT margin exceeded the targeted corridor of 8% to 10% during the past year.
The target for 2016 is to sell more than two million BMW, Mini and Rolls-Royce vehicles.
BMW also said that several hundred advance orders have been received for the electric BMW i3.
“The future belongs to those who dare to venture,” remarked Reithofer. The first pre-series BMW i3 came off the production line in January 2013 and it will be launched onto the market by the end of the year. “Several hundred advance orders have already been received for the BMW i3,” said Reithofer.
Reithofer stressed the growing ecological challenges in the world’s metropolitan areas for which the use of zero-emission drive technology is essential. “In the medium term, megacities have no choice but to encourage the use of alternative drive systems,” said Reithofer. Electric vehicles in Beijing, for instance, are already exempt from the allocation procedure for number plates and from fees.
