The BMW Group made a record net profit of 2,020 million euro in 2002, up 8.3% from 2001’s 1,866 million. The profit before tax (group profit from ordinary activities) also reached a new high of euro 3,297 million, a 1.7% improvement over the previous year (2001: euro 3,242 million).
The company is describing 2002 as the most successful year in the history of the BMW Group, reflecting the underlying strength of the group during a phase of substantial expenditure for the current product and market offensive.
Profit from the car segment reached 2,883 million euro, 3.3% higher than in the previous year (2001: euro 2,792 million). After adjustment for a one-off gain of euro 75 million on the sale of land no longer required for operational purposes, the previous year’s figure was 2,717 million euro, so that the improvement was 6.1% on a comparable basis.
The motorcycles segment achieved an 1.7% increase and reported a profit of 60 million euro (2001: 59 million euro). The financial services segment achieved a record profit from ordinary activities of 422 million euro, an improvement of 8.2% over the previous year (390 million euro).
The number of vehicles delivered to customers increased in 2002 by 16.7% to 1,057,344 units (2001: 905,657 units), the first time that more than one million cars have been delivered to customers in a single year.
The BMW Group generated total revenues of 42,282 million euro in 2002, representing a growth of 9.9% and also a new record figure (2001: 38,463 million euro). Revenues of the car segment increased by 13.8% to 38,179 million euro (2001: 33,542 million euro), revenues of the motorcycles segment rose by 6.7% to 1,130 million euro (2001: 1,059 million euro) and the financial services segment achieved a 9.3% increase and reported revenues of 8,213 million euro (2001: 7,514 million euro).
The BMW Group again increased car production in 2002 and, with 1,090,258 vehicles manufactured, exceeded the previous year by 15.2% (2001: 946,730). This includes 930,221 BMW cars manufactured in the plants in Munich, Dingolfing, Regensburg, Spartanburg and Rosslyn as well as at the group’s assembly plants, 2.9% more than in the previous year. In addition, 160,037 Minis were manufactured at the Oxford plant (2001: 42,395).
In 2002, the BMW Group invested 3,184 million euro in property, plant and equipment and intangible assets. In addition, 858 million euro of expenditure for development have been recognised as assets in accordance with IAS, so that total capital expenditure amounted to 4,042 million euro (2001: 3,516 million), an increase of 15.0% compared to the previous year.
The BMW Group was able to increase its market share again in virtually all of the main car markets. The market with the largest sales volume continued to be Germany, where the group sold 258,170 cars (+5.0%) and again performed well within an overall declining market. Sales in other Western European countries climbed to 368,878 BMW and Mini brand cars, an increase of 19.7% compared to the previous year. The group was largely unaffected by the mainly negative trends in East European countries and achieved satisfying growth rates there while enjoying its most successful year ever in the North American market. The number of cars sold the USA in 2002 increased by 20.4% to 256,622 units. The group is also still on growth course in Asia, where the sales volume increased by 28.4% to 78,436 units. In Japan, sales volume increased by 26.3% to 45,275 units. Sales in the rapidly growing Chinese market rose by 41.4% to 15,473 units. Another Asian market with above-average growth rates in 2002 was South Korea where 5,101 cars were sold, a growth rate of 87.7%.
The number of BMW brand cars sold increased by 3.7% to 913,225 units. Sales of the 3 series, with its five versions, rose to 561,249 units, a 5.1% increase compared to the previous year. The 5 series achieved an above-average performance in relation to its product life cycle with sales of 172,323 vehicles in 2002 11.1% below the previous year’s level. On a worldwide basis, 100,906 X5 units were sold, an increase of 22.1%. Demand for the new BMW 7 Series remains strong. In the first year after the model change, a total of 50,961 vehicles was sold. The sales volume of the new 7 series in the first full year of production was described as approximately 4% better than that achieved by the predecessor model in the equivalent period while 2,543 vehicles of the previous model were sold so that the total sales volume of the 7 Series was 53,504 units.
The annual sales volume of diesel models over the last five years has increased by more than 150% and reached 245,917 units in 2002. On a worldwide basis, almost 27% of all BMW cars delivered in 2002 were powered by diesel engines while, in Europe, 45% of all customers chose a car with a diesel engine. In the case of the X5, the percentage in Europe was 67%.
A total of 144,119 Mini cars were sold worldwide in 2002, well beyond the expectations of the BMW Group. Demand shows a clear trend towards the more powerful engine versions and optional equipment. The Cooper leads the sales-mix with a share of approximately 56% of sales, followed by the One with nearly 26% and the Cooper S, only available since the middle of 2002, with more than 18%.