BMW Group on Wednesday said it had achieved record sales volume and revenues for 2004 but did not reveal profit figures for the year despite saying it was on target for “record earnings”.
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In a statement, BMW AG chairman Helmut Panke confirmed the earnings forecast for 2004 saying: “We have achieved all of the targets which were set for the year. The group has been able to expand both its product range and its international market presence and acquired new dimensions. In line with this development, we will also achieve new record earnings for 2004.”
A BMW UK spokeswoman said the automaker did not usually make profit announcements until full results for the financial year were available.
In the statement from its Munich headquarters, BMW said that, despite adverse currency factors, group revenues in 2004, at €44,335 million, were 6.8% higher than in the previous year (€41,525 million).
Revenues at the automobile division rose by 11.0% to €42,544 million (€38,317 million),while financial services income rose 8.5% to €8,226 million (€7,582 million).
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By GlobalDataHowever, motorcycles division revenues fell 2.5% to €1,029 million (€1,055 million)
The group sold 1,208,732 BMW, Mini and Rolls-Royce cars in 2004, setting a new record 9.4% higher than 2003’s 1,104,916 units.
The BMW brand passed the one million mark with sales up 10.3% to 1,023,583 cars (2003: 928,151 units). The 1 series, on sale since mid-year, recorded 39,247 sales.
The outgoing fourth generation of the 3 series has been the most successful series in the group’s history: since its launch in 1998 more than three million new cars had been sold by the end of 2004 and the fifth generation sedan is just going on sale across Europe now, with other derivatives such as the coupe and convertible to follow over the next two years.
449,732 3 series were sold worldwide in 2004 (528,358 units), the 14.9% reduction being due to the sedan model changeover.
5 series volume reached 229,598 units, 23.8% more than in the previous year (185,481 units).
In its fourth year of production, worldwide sales of the controversially styled 7 series was 47,689 units, 17.6% down on 2003’s 57,899 units. The model, expected to get a mid-life styling and interior detailing makeover later this year, was nonetheless top of its class in Germany last year and, with 7,671 vehicle registrations, led the large limousine segment there as well.
Despite the availability of the smaller and cheaper X3, sales of the US-built X5 SUV, now in its fifth full year of production, were down just 0.5% to 104,988 units in 2003 (2003: 105,554 units).
The Austrian-built (by Steyr) X3 itself, which went on sale in January 2004, achieved 92,248 sales. 38,483 Z4 roadsters were delivered, 18.2% down on 2003’s 47,049 units – BMW said that market segment is contracting world-wide.
Just three years after its launch, the 500,000th Mini came off the production line in Oxford, UK, last August.
Mini sales rose 4.5% to 184,357 units in 2004. The Cooper remained the most popular derivative with 77,532 units sold (though volume was down -11.3% from 2003’s 87,378 units).
The overall rise in Mini sales – for the third full year in a row – was due to the launch of the new convertible versions in July – by year-end, 18,741 had been sold.
792 Rolls-Royce Phantoms were delivered in 2004 compared to 300 in 2003. This was the largest number of Rolls-Royce brand vehicles sold in 14 years.
The BMW group also set a new production volume record during the year, making 1,250,345 cars, 11.7% more than in 2003 (1,118,940).
Motorcycles volume fell 0.7% to 92,266 units (2003: 92,962 units).
At the financial services division, the volume of new customer financing contracts rose by 19.1% to a record €20,749 million while the proportion of new BMW and Mini brand cars financed rose to 42.0% (2003: 38.3%).
BMW invested €3,226 million in property, plant and equipment and intangible assets during 2004 and its worldwide workforce grew 1.6% to 105,972 employees.
BMW did not confirm in its statement that it will launch an updated 7-series during 2005.
But it did confirm the launch this coming northern hemisphere spring of four-wheel drive BMW 525xi and 530xi sedans, the first the brand has ever offered with all-wheel drive – though it has previously offered 4WD Touring (wagon) models.
The redesigned 3 series sedan launches in RHD markets in March and, in the same month, production starts at BMW’s new Leipzig plant in eastern Germany.
“The BMW Group therefore predicts a sales volume increase for all three brands and thus a new record sales volume level in 2005,” the statement added.
