With concerns ranging from the sizeable national debt of many countries to political unrest in certain regions of the world down to the present volatile business environment and the stability of global currencies, things are looking rather scary. You would expect that companies all over the world would be window dressing their forecasts, predicting conservatively and hoping that their results are better than expected. BMW AG however is not only doing well, it is in fact exceeding expectations and as a result will be raising their forecast for the business year 2011. This comes straight from Dr. Norbert Reithofer who is the Chairman of the Board of Management of BMW AG. It doesn’t get any more “official” than that.
The newly revised forecast includes:
- Record sales of over 1.6 million cars.
- A record pre-tax result on the group level, which significantly exceeds last year’s result.
- An EBIT margin in the Automobile Segment of more than 10%.
- A considerable increase in the result before taxes of the Financial Services segment.
Mr. Reithofer in a statement said “Our cars and motorcycles are definitely trendsetters. Their design language and cutting-edge innovations are highly desired by our customers around the world.”
If more proof was needed, then consider the fact that the first six months of 2011 were the best half-year ever in BMW AG’s history. This means that BMW sold more cars and motorcycles in the first two quarters of 2011 than any other previous year during the same time period. Here are some key financials for the first half of 2011:
- Pre-tax result of 4.5 billion Euros.
- Net profit on Group level of 3 billion Euros.
- EBIT (earnings before interest and taxes) margin in the Automobile segment of 13.3%.
According to Mr. Reithofer, BMW AG managed to grow in almost all automotive markets in the first six months of 2011. He attributes these strong financial numbers to the quality with which the cars themselves are produced, their innovation, trendsetting design and their highly efficient engines.
Not only is he right though, but the above mentioned remarks make for some very solid points that seem to resonate well with new customers and keeps previous owners coming back for more. And even better, if we look at the global automotive market in comparison to that of BMW Group, we see some very clear signs of healthy, positive growth.
- Global automotive markets are up by 6% — BMW Group is up by 19.7%
- US car market is up by 13% — BMM Group is up by 18%
- China up by 20% — BMW Group up by 61%
- India up by 21% — BMW Group up by 107%
- Brazil up by 7% — BMW Group up by 69%
- UK down by 7% — BMW Group up by 14%
- Japan down by 30% — BMW Group up by 4%
The above figures are impressive indeed, especially when considering the fact that markets such as those found in the UK and Japan have seen a decrease within their respective automotive industry yet BMW still manages to expand their presence and positively increase their sales.
When all is said and done however, it’s the product range that makes all of the difference and BMW’s portfolio is expanding and growing. The new 5 Series and the X5 are market leaders in their respective segments. The 7 Series, the X3 and the X1 have also posted increases in sales. The new 6 Series Convertible has been available since spring and has enjoyed a very positive reception from the international media while the new 6 Series Coupe will be coming this fall. Moving onto the M family, the 1 Series M Coupe was launched in May and come this Fall, the new M5 will be offered as well.
In addition, BMW will begin the introduction of the second generation 1 Series which was presented to the world in Berlin this July and received a positive response from the media. It will be available this Fall and
with it we will also see the launch ofCoupe which will also be presented in the Fall.In total, the BMW Group delivered over 833,000 cars and over 64,000 motorcycles of the two brands which include BMW and Husqvarna in the first half of 2011.
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