BMW Group Corporate Communications
7 May 2002
Group revenues for the first quarter increased by 14.0%
Positive outlook for the full year
The BMW Group was able to maintain its success in the first quarter of 2002 and thus continue its growth course. Group revenues for the first quarter 2002 totalled euro 10,768 million, an increase of 14.0% compared to the equivalent period in 2001.
The profit from ordinary activities in the first quarter 2002 was euro 1,011 million. The profit in the previous year of euro 1,030 million included a one-off gain of euro 75 million from the sale of land no longer required for operational purposes. Excluding this one-off gain, the comparable figure for the first quarter 2001 was euro 955 million. The profit for the first quarter 2002 thus
represents an improvement of 5.9%.
Net profit rose by 3.8% from euro 609 million in the first quarter 2001 to euro 632 million in the first quarter 2002.
At 31 March 2002, the BMW Group´s worldwide workforce comprised 98,128 employees, 3.0% more than at 31 March 2001.
Product and market offensive will be continued
The BMW Group will continue to pursue its product and market offensive this year, as planned. In addition to further versions of the BMW 7 Series, the Z3 successor will be presented in the autumn. It will be launched initially on the American market and, in the spring of 2003, in Europe.
By the end of 2002, MINI brand cars will be on sale in more than 50 countries, thus also making an important contribution to the growth of the BMW Group.
Positive outlook for the 2002 financial year
Prof. Dr.-Ing. Joachim Milberg, Chairman of the Board of Management of BMW AG: "The good start to the year reinforces our expectations that the BMW Group will be able to continue the previous year´s successful performance." Provided that economic conditions do not deteriorate unexpectedly, management believe that it will again be able to increase sales volumes, revenues and earnings. For the first time, there is thus a possibility that more
than one million BMW and MINI brand cars will be sold in 2002.
Automobiles segment continues steady growth
Revenues of the Automobiles segment totalled Euro 9,485 million, an increase of euro 1,422 million (+17.6%) compared to the first quarter 2001. The profit from ordinary activities reached euro 914 million. The profit in the previous year was euro 985 million, including a one-off gain of euro 75 million on the sale of land no longer required for operational purposes.
During the first three months of 2002, a total of 260,462 cars were delivered to customers, an increase of 17.4% compared to the same period last year. The MINI brand, launched in the middle of 2001, contributed disproportionately to this growth with 27,691 cars sold during the first three months of 2002. The number of BMW brand cars sold during the first quarter 2002 was 232,771, representing an increase of 5.0% over the previous year.
Sales of the BMW 7 Series were fully in line with the group´s high
expectations. In the first quarter 2002, 11,461 cars were sold (first quarter 2001: 7,563 units), including 1,436 of the predecessor model. Sales of the new BMW 7 Series in the first five months after market launch are already well ahead of the sales volume achieved by the predecessor model at this early
stage of its product-life cycle.
Motorcycles segment remains focussed on growth
Revenues of the Motorcycles segment rose to euro 302 million in the first quarter 2002, a 19.8% increase over the same period last year. The profit from ordinary activities for the first quarter 2002 improved by 7.1% to euro 30 million.
The Motorcycles segment increased sales volume in the first three months of 2002 by 20.8% to 23,251 units compared to the same period last year.
Financial Services segment successful again
In the first quarter 2002, the Financial Services segment experienced its best ever first quarter in its core business, the financing of BMW and MINI brand vehicles. One in three new vehicles sold by the BMW Group is financed by the BMW Financial Services segment. A total of 340,353 financing contracts were signed between January and March 2002, an increase of 14.6% over the first quarter 2001. 42.1% of new contracts related to customer business and 57.9% to dealer financing.
Revenues of the Financial Services segment in the first quarter increased to euro 2,128 million, or by 17.6% compared to the corresponding period in 2001. The Financial Services segment recorded a profit from ordinary activities of euro 80 million, a rise of euro 27 million or 50.9% over the same period in 2001.
Sounds like a good time to invest in BMW stock to me...