BMW Group cautiously optimistic for 2013
Ambitious targets in challenging environment
Sales volume set to rise to new record figure in 2013
Earnings before tax expected at previous year’s level
High rate of expenditure for new technologies and models
EBIT margin between 8% to 10% targeted for Automotive segment
All Strategy Number ONE interim targets fully attained
Reithofer: Several hundred advance orders received for BMW i3
Munich – March 19, 2013… After achieving a record-breaking year in 2012, the BMW Group’s outlook for the current 12-month reporting period is cautiously optimistic, based on ambitious targets set amid a persisting difficult and volatile economic environment. “We are aiming to achieve a further rise in unit sales in the current year and hence a new sales volume record”, stated Norbert Reithofer, Chairman of the Board of Management of BMW AG, at the Annual Accounts Press Conference in Munich on Tuesday.
In view of the strong demand for its vehicles, the BMW Group will continue to invest in boosting capacity in 2013, thus enabling it to remain successfully on course. Development costs for new technologies and vehicle concepts will also continue to rise. 2013 alone will see the launch of eleven new models. By the end of 2014, some 25 new models will have been added to the range, ten of them totally new models.
“Due to high levels of expenditure for new technologies and models as well as investment in the production network, we expect to report Group profit before tax on a similar scale to the year 2012″, continued Reithofer.
Despite the additional costs referred to, the Automotive segment continues to forecast an EBIT margin of between 8% and 10% for the current year. This corridor is also seen as a sustainable EBIT margin for the time beyond 2013. However, depending on political and economic developments, actual margins could end up being above or below the targeted range.
The Motorcycles segment forecasts further sales volume growth in the current year for the BMW brand thanks to attractive new models such as the R 1200 GS, which should, in turn, bring about a further rise in segment revenues and earnings.
The Financial Services segment is also expected to put in another strong performance and remains committed to achieving a return on equity of at least 18%.
Forecasts for the current year are based on the assumption that worldwide economic conditions will not change significantly.
Strategy Number ONE: First third successfully completed
The BMW Group has been tirelessly pursuing its Strategy Number ONE with great success since 2007, enabling it to achieve the intended impact of becoming significantly more profitable and competitive. The Group is also extremely well placed to meet future challenges: “We have now successfully implemented the first third of our strategy. All interim targets have been fully attained”, emphasised Reithofer.
Group profit before tax doubled during the period between 2007 and 2012. At 10.9%, the Automotive segment