RECORD FIGURES FOR OPENING QUARTER 2012 THE BMW GROUP HAS STARTED THE YEAR WITH THE BEST FIRST QUARTER IN THE COMPANY’S HISTORY. RECORD LEVELS WERE ACHIEVED FOR SALES VOLUME, REVENUES AND EARNINGS DURING THE FIRST THREE MONTHS OF THE YEAR. ONCE AGAIN THE PRINCIPAL FACTORS FOR THIS SUCCESS, WHICH ENABLED THE BMW GROUP TO STRENGTHEN ITS POSITION AS THE WORLD’S LEADING MANUFACTURER OF PREMIUM VEHICLES, WERE AN ATTRACTIVE AND FRESH RANGE OF MODELS AS WELL AS EVENLY-SPREAD GROWTH AROUND THE GLOBE.
Sales volume records for BMW, MINI and Rolls-Royce brands
The total number of BMW, MINI and Rolls-Royce brand vehicles sold in the first quarter 2012 climbed to a new record of 425,528 units (+ 11.2 %). More vehicles were sold in March than in any single previous month. All three of the BMW Group’s automobile brands reported new record sales volume levels for the quarter. Sales of BMW brand vehicles rose by 11.0 % to 356,548 units (2011: 321,175 units). MINI recorded a 12.1 % increase in sales volume with 68,210 units sold during the quarter (2011: 60,860 units). Rolls-Royce Motor Cars also continued to perform well and achieved its best first quarter in the brand’s history with 770 units (2011: 723 units; + 6.5 %) handed over to customers during the quarter.
The Motorcycles segment was also able to improve on its previous year’s first-quarter performance by 7.8 % by selling 27,015 units (2011: 25,049 units). This included 24,373 BMW motorcycles, which represented a new first-quarter sales volume record for the brand (2011:
23,109 units; + 5.5 %).
The Financial Services segment continued to make positive progress during the period under report. At 31 March 2012 the segment was managing a portfolio of 3,646,111 lease and financing contracts with retail customers and dealers worldwide; this corresponds to an increase of 12.8 %.
Revenues and earnings flourish
Driven by strong growth in sales volumes, we also achieved new first-quarter records for revenues and earnings. Group revenues for the three-month period from January to March 2012 rose by 14.1 % to € 18,293 million (2011: € 16,037 million). The Group reports a profit before financial result (EBIT) of € 2,132 million (2011: € 1,795* million; + 18.8 %). Over the same period, the Group’s pre-tax profit improved by € 371 million to € 2,076 million (2011: € 1,705* million; + 21.8 %).
Workforce increased
The BMW Group had a worldwide workforce of 101,260 employees at 31 March 2012, 5.4 % more than one year earlier. The increase was partly attributable to the acquisition of the ING Car Lease Group (ICL Group) in September 2011. In addition, skilled workers and engineers continue to be recruited in order to keep pace with persistently strong demand for BMW Group vehicles and to focus on the development of new technologies.
New BMW 3 Series Sedan launched worldwide
The new BMW 3 Series Sedan has been available on the markets worldwide since February 2012. Now in the sixth generation, the latest model is also setting standards in its class and has been acclaimed internationally by customers and the media alike. The BMW 6 Series Gran Coupé, the first four-door Coupé in the brand’s history, will appear in June, and the revised version of the BMW 7 Series will become available from July onwards.
The MINI Roadster was added as the sixth member of the MINI family at the beginning of March 2012.
The Rolls-Royce Phantom Series II was presented at the Geneva Motor Show at the beginning of March and will be launched on the markets during the second half of the year.
Models available to customers since the start of the motorcycle season at the end of March include the G 650 GS Sertao, the revised models of the S 1000 RR and the F 800 R, the special R 1200 GS Rallye model and two special models from the K 1300 R Series. Over the course of the year, the first high-capacity scooters, the C 650 GT and the C 600 SPORT, will be added to the model range.
Cooperation Agreement with Toyota signed
At the end of March 2012 the BMW Group and Toyota Motor Corporation signed a ooperation Agreement to carry out joint research activities to investigate the next generation of lithium-ion battery technology. The goal of the research project is to increase the performance of lithium-ion battery cells.
In addition to these joint research activities, the BMW Group and Toyota Motor Europe (TME), the European subsidiary of Toyota Motor Corporation, had already reached an agreement in December 2011 for the BMW Group to supply fuel-efficient diesel engines to TME from 2014 onwards.
* Adjusted for effect in accounting policy for leased products as described in note 3 in accordance with IAS 8
Automobile markets performing inconsistently
Automobile markets were generally in a good state of health during the first quarter 2012. The global market grew by approximately 8 % compared to the same quarter last year. The premium segment performed even better, growing by 9 % over the same period.
Within that generally positive picture, Europe’s automobile markets overall were well down on the previous year, mainly reflecting the negative impact of the sovereign debt crisis. While the market as a whole contracted by 8 %, the premium segment was at least able to match the previous year’s level. By contrast, the German market continued to remain stable. Partly as a result of higher domestic demand, the automobile market as a whole edged up by 1 % while the premium segment grew by approximately 4 %. Of the other major automobile markets in Europe, only Great Britain was able to generate growth in the first quarter 2012 (+ 1 %).
The Spanish market was approximately 2 % down on the first quarter 2011, contracting once again after the previous year’s slump. Italy and France registered decreases in excess of 20 %.
Good employment figures helped to keep economic recovery going in the USA in the first quarter 2012 and enabled the market to grow by around 13 % in total. The premium segment was around 6 % up on the previous year.
After the natural catastrophe in the previous year, growth rates in Japan were very high during the first quarter 2012. The main factor here was the backlog in demand which had been caused by production interruptions across Japanese industry. The overall market therefore grew by some 48 % compared to the same quarter last year and the premium segment by about 32 %.
The Chinese market increased slightly compared to the first quarter 2011. The premium segment performed also well over the same period. While the Russian market presented itself in good health, with first-quarter growth for the total market (+ 19 %) and for the premium segment (+ 38 %), the markets in Brazil and Turkey were lower than in the previous year. The automobile market in India grew by 10 %.
Motorcycles markets get inconsistent start in 2012
The international motorcycle markets in the 500 cc plus class showed some signs of recovery during the first quarter 2012. The market increased worldwide by 4.0 %.
In Europe, it was the southern-most countries which performed particularly weakly (– 6.6 %). The 500 cc plus class market in Germany grew by 5.9 % compared to the previous year. Extremely severe decreases were recorded for Italy (– 25.2 %) and Spain (– 30.2 %). The decreases in Great Britain (– 3.4 %) and France (– 2.7 %) were not so pronounced. In contrast, the US motorcycles market in the 500 cc plus class gathered strength during the first quarter of 2012 and recorded growth of 12.9 %. The Brazilian market was also stronger than in the previous year (+ 46.9 %). The Japanese market showed good signs of recovery in the first quarter 2012 and grew by 9.6 %.
Financial Services market
Central banks continued to pursue their expansive monetary policies at the beginning of 2012. The European Central Bank (ECB) ensured the supply of liquidity on favourable conditions for Europe’s financial markets.
With the European rescue package also being expanded and many countries – particularly those in southern Europe – implementing austerity programmes, the situation on international capital markets eased. Financial services providers profited from the reduction in risk spreads and the ensuing lower refinancing costs.
Lending business risk levels have continued to fall during the first quarter 2012. By contrast, the situation on southern European markets remained tense due to ongoing uncertainty about the economic prospects for this region. Used car markets also remained stable during the first quarter. In some southern European countries, however, business with used cars remains weak.
Vehicle sales volume reaches record level
The BMW Group registered the most successful first quarter in its corporate history during the period from January to March 2012. The year began with new high levels for all three brands. 425,528 BMW, MINI and Rolls-Royce brand vehicles were handed over to customers worldwide (+ 11.2 %), of which BMW accounted for 356,548 units (+ 11.0 %), MINI for 68,210 units (+ 12.1 %) and Rolls-Royce Motor Cars for 770 units (+ 6.5 %).
Strong growth particularly in Asia
First-quarter sales in Europe, at 201,063 units, were marginally up on the previous year’s already high level (+ 0.5 %), albeit with varying performances on the individual markets. Southern Europe in particular was dominated to a great extent by the debt crisis. Sales volume in Germany fell slightly by 1.6 % to 63,024 units. In Great Britain we almost reached the previous year’s level with first-quarter sales volume of 38,968 units (– 0.7 %).
Fewer vehicles were sold in Italy (16,873 units; – 11.2 %) and Spain (10,370 units; – 3.3 %). In France we were able to increase sales volume by 0.9 % to 16,577 units.
North America made a positive contribution to the BMW Group’s good first-quarter performance with sales up by 16.7 % to 83,177 units. During the period we sold 75,931 vehicles in the USA – an increase of 16.5 %.
Our sales performance in Asia was again particularly strong. The BMW Group handed over 118,880 vehiclesto customers in this region, almost one third more than in the first quarter of the previous year (+ 31.9 %). China in particular played a major part in this performance, with 80,218 units sold (+ 36.6 %). First-quarter sales volumes also picked up rapidly in Japan, climbing by 44.4 % to 13,994 units.
Renewed double-digit growth for BMW
Sales of the BMW 1 Series during the period from January to March 2012 rose by 20.2 % to 54,160 units. This strong performance was helped in particular by sales of 41,626 units (+ 43.1 %) of the new five-door version of the 1 Series. The BMW 3 Series also performed well, with the market launch of the new Sedan in February (+ 13.6 %) already having a positive impact. In total, 91,189 units of the BMW 3 Series were handed over to customers during the quarter under report (+ 3.9 %). The BMW 5 Series remained market leader in its segment with 82,231 units (– 3.7 %) sold worldwide. First-quarter sales of the new generation of the BMW 6 Series picked up significantly, rising more than fivefold to 4,651 units (2011: 789 units). The BMW 7 Series also continued to enjoy strong demand and 17,786 units (+ 20.0 %) were handed over to customers during the quarter under report.
Sales of the BMW Z4, at 4,140 units, were 8.3 % lower than in the previous year. The various models of the BMW X family continue to perform extremely well. Sales of the X1 went up by 8.4 % to 29,532 units. The BMW X3 recorded particularly strong sales volume growth with 35,248 units being sold during the period (+ 55.3 %). Thanks to sales of 26,563 units, the BMW X5 remained worldwide market leader in its segment (+ 14.7 %). 11,048 units of the BMW X6 were handed over to customers, 13.7 % more than in the corresponding quarter last year.
The MINI brand also benefitted from the introduction of new models. The Coupé, for instance, achieved a firstquarter sales volume of 3,029 units, while the Roadster –which was only launched in March 2012 – had already gained 980 customers by the end of the quarter. Sales of the MINI Countryman jumped by 36.8 % to 22,001 units.
The other models of the MINI family were down on the previous year (MINI Hatch: 30,692 units; – 5.3 %,MINI Convertible: 5,969 units; – 7.7 %, MINI Clubman: 5,539 units; – 6.3 %).
The MINI brand continued to generate an extremely high-value product mix; 44.3 % of customers opted for the MINI Cooper, 36.1 % for the MINI Cooper S and 19.6 % for the MINI One.
First-quarter sales volume increase for Rolls-Royce The Rolls-Royce Phantom was handed over to 113 customers during the quarter under report (+ 6.6 %). The Phantom Series II will become available from the beginning of the second half of the year. First-quarter sales of the Phantom Coupé (including the Drophead Coupé) totalled 41 units (– 19.6 %). Demand for the Rolls-Royce Ghost remained strong throughout the three-month period, with sales up by 8.8 % to 616 units.
Vehicle production volume increased
A total of 460,900 BMW, MINI and Rolls-Royce brand vehicles (+ 7.1 %) were manufactured by the worldwide production network of the BMW Group during the first three months of 2012, comprising 378,024 BMW brand vehicles (+ 7.1 %), 82,129 MINI brand vehicles (+ 7.1 %) and 747 Rolls-Royce brand vehicles (– 19.0 %).
Automotive segment revenues and earnings increased Strong demand for BMW Group vehicles had a positive impact on revenues and earnings in the Automotive segment.
First-quarter revenues rose by 12.4 % to € 16,159 million. Segment EBIT totalled € 1,878 million (+ 10.0 %) and profit before tax € 1,820 million (+ 13.4 %).
Automotive segment workforce up compared to previous year The BMW Group had a worldwide workforce of 92,252 employees in its Automotive segment at 31 March 2012, 3.8 % more than one year earlier.
Text by: Clásicos al Volante.
Photograph by: BMW.
