BMW aims for 2 million car sales in 2014

BMW Group's strong performance continued during the past year despite a challenging economic environment worldwide. The company claims it maintained its position as the world's leading premium manufacturer.

"In 2013 we achieved new highs for sales volume and profit and have thereby reached the targets we set ourselves for the full year", stated Norbert Reithofer, chairman of the board of management of BMW AG in Munich today.

Group revenues for 2013 totalled € 76,058 million (2012: € 76,848 million; 
-1.0 per cent) and were thus marginally down on the previous year, with the difference due to exchange rate developments. 

Group profit before tax (EBT) increased by 1.4 per cent to a new high of € 7,913 million (2012: € 7,803 million) despite increased investment in new technologies, greater competition and higher personnel costs. 

Group net profit rose by 4.5 per cent to the new record value of € 5,340 million (2012: € 5,111 million).

The BMW Group increased deliveries to customers by 6.4 per cent to 1,963,798 units (2012: 1,845,186 units), with all three brands registering all-time highs.

Automotive segment: EBIT margin at 9.4 per cent in 2013. The automotive segment revenues rose by 0.6 per cent to € 70,629 million (2012: € 70,208). Influenced by the above-mentioned factors - high expenditure for new technologies, increasing the product range and market launch costs as well as increased competition - EBIT decreased to € 6,657 million (2012: € 7,599 million; -12.4 per cent). The EBIT margin came in at 9.4 per cent and was thus in the upper half of the targeted corridor of between 8 and 10 per cent. Segment profit before tax amounted to € 6,561 million (2012: € 7,170 million; -8.5 per cent ).

BMW claimed the brand retained pole position in the premium segment in 2013, with worldwide sales volume up by 7.5 per cent to 1,655,138 units (2012: 1,540,085 units). The BMW X1 as well as the BMW 3, 5, and 6 Series all asserted their positions as market leaders in their own segments.

Solid growth was recorded again for the BMW X1, with sales volume up by 9.2 per cent to 161,353 units (2012: 147,776 units). The BMW X3 performed well again and recorded a 5.0 per cent increase to 157,303 units (2012: 149,853 units). Sales of the BMW X5 were only slightly down on the previous year at 107,231 units (2012: 108,544 units; -1.2 per cent) despite the model change (the new BMW X5 has been available since mid-November).

The BMW 3 Series remained a major source of growth in 2013, with sales rising by 23.0 per cent to 500,332 units (2012: 406,752 units). The success story of the BMW 5 Series continued over the 12-month period, during which 366,992 units (2012: 359,016 units; +2.2 per cent) were sold. The BMW 6 Series was also able to make significant progress, with sales up by 19.4 per cent to 27,687 units (2012: 23,193 units).

MINI similarly set a new sales volume record in 2013, with worldwide sales edging up by 1.2 per cent to 305,030 units (2012: 301,526 units). The new generation of the MINI will make its appearance in the showrooms from spring 2014 onwards. The MINI Hatch, at the end of its model life-cycle, still managed to achieve a sales volume of 128,498 units in the past year (2012: 131,569 units; 
-2.3 per cent). Sales of the MINI Countryman were roughly at the previous year's level, with a total of 101,897 units sold (2012: 102,271 units; -0.4 per cent).

Rolls-Royce Motor Cars remained market leader in the ultra-luxury segment in 2013 and, with sales of 3,630 units (2012: 3,575 units; +1.5 per cent), achieved a new sales volume record for the fourth year in succession.

The BMW Group recorded sales volume growth on nearly all continents in the past year.

"The BMW Group's sales strategy is geared towards achieving an evenly balanced distribution of worldwide sales across the three main regions of the world to avoid overdependence on any single market", commented Reithofer.

At 859,546 units, sales in Europe - the BMW Group's largest sales region - were almost at their previous year's level, despite challenging business conditions in some countries (-0.7 per cent).

For the first time, the number of vehicles sold by the BMW Group in Asia exceeded the half-million mark. Sales in the region grew 17.3 per cent to 578,678 units, helped by a 19.7 per cent rise on the Chinese mainland to 391,713 units.

The BMW Group continued to perform well in the Americas region, with deliveries to customers up by 9.0 per cent to 463,822 units, including 376,636 units sold in the USA (+8.1 per cent).

The motorcycles segment also set a new sales volume record. Sales volume, revenues and earnings of the Motorcycles segment rose in 2013. 

Revenues edged up 0.9 per cent to € 1,504 million (2012: € 1,490 million). EBIT rose to € 79 million (2012: € 9 million) and profit before tax to € 76 million (2012: € 6 million). Segment earnings in 2012 were impacted by expenses incurred in realigning the motorcycles business.

Despite challenging market conditions, a new sales volume record was set for 2013, with the number of BMW motorcycles delivered to customers reaching a new of level of 115,215 units (2012: 106,358 units; +8.3 per cent).

The Financial Services segment continued to perform well during the past year. Revenues increased 1.7 per cent to € 19,874 million (2012: € 19,550 million). Profit before tax amounted to € 1,639 million (2012: € 1,561 million), 5.0 per cent ahead of the previous year.

The number of new contracts within the credit financing and leasing lines of business grew worldwide 9.7 per cent to 1,471,385 contracts (2012: 1,341,296 contracts). The portfolio of lease and financing contracts in place with dealers and retail customers at 31 December 2013 climbed by 7.4 per cent to a total of 4,130,002 contracts (2012: 3,846,364 contracts). 

The workforce size increased with a record number of apprentices. In 2013, the BMW Group trained more young people than ever, employing a total of 4,445 apprentices worldwide.

Reithofer commented: "We consider training to be an investment in the future of the company and in society".

The size of the workforce increased 4.2 per cent in 2013, reflecting both dynamic growth in business volumes and the rapid pace of innovation. At the end of the reporting period, the BMW Group had a worldwide workforce of 110,351 employees (31 December 2012: 105,876 employees).

The increase is due to the growing need for engineers and skilled workers to keep pace with continued strong demand on the one hand and to push ahead with innovations and develop new technologies on the other.

The BMW Group is striving to increase worldwide sales volume further in 2014.

"We forecast further sales volume growth in the current year which will again bring us a new all-time high. In doing so, we should exceed the threshold of two million vehicles", stated Reithofer.

The Supervisory Board will propose to the Annual General Meeting that Supervisory Board members Franz Haniel, Susanne Klatten, Dr. h.c. Robert W. Lane and Stefan Quandt be re-elected for a mandate period of five years each and Wolfgang Mayrhuber for a mandate period of three years.                                        ∎