In 2007, earnings before interest and taxes (EBIT) rose 4.0% to 4,212 million euros (4,050 million euros in 2006). As a result of the one-off effects of tax reforms in Germany, the net profit rose by 9.0%, reaching a new all-time record of 3,134 million euros (2,874 million euros in 2006). Due to the further sharp rise in sales volumes and the dynamic growth in the group’s financial services activities, consolidated turnover rose by 14.3% to 56,018 million euros (48,999 million euros in 2006).
“For the 2007 financial year, we achieved all the targets that we had set ourselves,” commented Norbert Reithofer, Chairman of the Management Board of BMW AG. “Even though 2007 was another successful year, we have to make sure that the BMW Group is ready to face the major challenges ahead. All the measures adopted as part of our Number ONE strategy are aimed at safeguarding the firm’s future and increasing its value,” he added.
In 2007, BMW suffered the adverse impact of new costs resulting from unfavourable trends in the foreign exchange and raw materials markets. The firm none-theless managed to offset these negative effects by adopting measures to improve efficiency and productivity.
Shareholders to benefit more from the firm’s success
At the Annual General Meeting to be held on 8 May 2008, the Management Board and the Supervisory Board will propose a 51.4% increase in the dividend per common share at 1.06 euros per share (0.70 euros in 2006) and of 50% per preferred share at 1.08 euros per share (0.72 euros in 2006).
The BMW Group is aiming for further growth for the three brands in 2008 in a view to streng-thening its position as the world leader in the premium automobile segment.
Increased profits in automobile segment in 2007
The number of vehicles sold under the BMW, Mini and Rolls-Royce brands rose again in 2007, reaching new record levels. Sales volumes increased by 9.2% to 1,500,678 cars compared with 1,373,970 in 2006.
BMW’s EfficientDynamics concept, designed to reduce CO2 emissions and fuel consumption, made a precious contribution to this good performance. Over 450,000 BMW and Mini vehicles equipped with the EfficientDynamics technology had been sold by the end of 2007; the figure should exceed 800,000 in 2008.
BMW sold 1,276,793 vehicles in 2007, a 7.7% increase on 2006. Mini also clocked up significant growth, with sales increasing by 18.5% to 222,875 vehicles. Rolls-Royce increased its sales for the fourth conse-cutive year, selling 1,010 vehicles compared with 805 in 2006, i.e. growth of 25.5%.
Good performance continues in motorcycle segment
BMW’s motorcycle segment again improved its performance, with pre-tax profits increasing by 7.6% to 71 million euros (66 million in 2006). However, turnover fell by 2.9% to 1,228 million euros due to changes in the range. The EBIT margin for the motorcycle segment rose to 6.5% compared with 5.9% in 2006. Sales volume increased by 2.6% to 102,467 units.
Dynamic growth continues in financial services segment
Pre-tax profits increased by 8.5% in the financial services business, to 743 million euros. Turnover increased by 25.8% to 13,940 million euros (11,079 million euros in 2006). At the end of the financial year, 2.63 million financing and leasing contracts had been placed with dealers and customers, i.e. an increase of 15.8%. The percentage of new BMW and Mini vehicles financed by the financial services segment rose to 44.7% compared with 42.4% in 2006.
Investments almost up to previous year’s level
In 2007, the firm’s investments amounted to 4,267 million euros compared with 4,313 million euros in 2006. The BMW Group’s investment ratio fell to 7.6% (8.8% in 2006).
Slight increase in staff numbers
The firm employed 107,539 people world-wide compared with 106,575 in 2006. This slight increase of 0.9% was due to the acquisition of Husqvarna Motorcycles and two acquisitions in the financial services sector.
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