BMW has reported a first quarter after tax loss of EUR152m compared with a EUR487m profit a year ago.
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Group revenues for the quarter fell 13.4% to EUR11,509m. EBIT was negative EUR55m compared with a EUR827m profit the previous year. The loss before tax was EUR198m versus a EUR641m profit in Q1 2008.
BMW can take some consolation from the fact that the EBIT result easily beat the average estimate for a EUR291m loss in a Reuters poll of analysts who had expected a worse result in the core car business.
“We have continued our forward-looking finance and cost management strategies with great determination during the opening quarter of the year”, said BMW chairman Norbert Reithofer.
“In view of the difficult conditions still prevailing on the financial markets, we remain focused in our efforts to improve our liquidity position.”
He said the group’s Q1 performance was nevertheless perceptibly impaired by the ongoing reluctance of consumers to spend and by high refinancing costs.
A range of efficiency improvement measures are being implemented “at great pace” on both the cost and the revenues side to enable the group to overcome the current crisis. It continued to improve its cost structures during the first three months of the year, reduced inventory levels further and cut back working capital in the Automobiles segment during the same period by EUR1,076m.
“We were able to generate a positive free cash flow of EUR220m during the first quarter”, said Reithofer. Group liquidity improved to EUR10.025bn in the period.
BMW declined to make any forecasts, saying it continued to see the current year “as one of transition”.
“In view of the fact that it is almost impossible to predict how the global economy will fare in the near future, it is still currently not feasible to give reliable earnings forecasts for the full year 2009. In view of the ongoing weakness of the markets, it is likely that the BMW Group’s worldwide sales volume will be lower than in the previous year.”
“We intend to maintain or further increase our market shares in the premium segment in the current year”, said Reithofer.
He reiterated the goal of a return on capital employed of over 26% and an EBIT margin of between 8% and 10% for the Automobile segment by 2012.
Group auto deliveries fell 21.2% to 277,264 units in the first quarter. Sales of BMW brand cars dropped by 20.5% to 233,498 units, Mini volume fell 24.9% to 43,592 units and Rolls-Royce performance was flat at 174 units sold versus 183 a year ago.
Automobiles booked negative EBIT of EUR251m versus positive EBIT of EUR619m a year ago and a pretax loss of EUR471m versus EUR539m profit on revenues off 21.0% to EUR9,605m.
