BMW announces 2007 results

With record sales volume and the exceptional benefit of a tax reform effect in Germany, BMW Group¡¯s net profit was up by 9.0% to €3,134 million in 2007, and the Group is to increase its dividend by 51.4%.
 
BMW Group has reported profit before tax, at €3,873 million (2006: €4,124 million), 6.1% down on the record level achieved in the previous year. Adjusted for the exceptional gain on the settlement of the ex-changeable bond on shares in Rolls-Royce plc, the profit before tax, as previously announced, was 0.6% higher than inn 2006. Profit before financial result (EBIT) rose by 4.0% to €4,212 mil-lion (2006: €4,050 million).
 
As a result of the one-off effect of a corporate tax reform in Germany, net profit also rose by 9.0% to a new all-time high level of €3,134 million (€2,874 million). Group revenues climbed by 14.3% to €56,018 million (2006: €48,999 million) on the back of sharp rise in sales volume and thanks to the dynamic growth of BMW¡¯s financial services business.
 
After the sales volume record in 2007, the BMW Group is targeting further sales volume growth in 2008.
 
The profit before tax of the cars business for the financial year 2007 improved by 7.3% to €3,232 million (2006: €3,012 million) despite adverse currency factors and higher raw materials prices. EBIT improved by 12.9% to €3,450 million (2006: €3,055 million). The EBIT margin was unchanged at 6.4%. Revenues increased by 12.7% to a record €53,818 million (2006: €47,767 million), growing ahead of sales volume. RoCE improved to 22.8% (2006: 21.7%).
 
The total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers in 2007 rose to its highest level to date, with the sales volume up by 9.2% to 1,500,678 units (2006: 1,373,970 units).
 
More than 450,000 BMW and MINI brand cars equipped with the EfficientDynamics package of fuel-saving technologies had been sold by the end of 2007 and by the end of the current year this figure is expected to rise to over 800,000 vehicles.
 
1,276,793 BMW brand cars were sold in 2007, 7.7% up on the previous year's 1,185,088 units. MINI retail sales volume rose by 18.5% to 222,875 units (2006: 188,077 units). Rolls-Royce increased its sales volume figures for the fourth year in succession, to 1,010 vehicles (2006: 805 vehicles) (+ 25.5%), therefore achieving a four-figure annual sales volume figure for the first time.
 
The motorcycle business's profit before tax rose by 7.6% to €71 million (2006: €66 million). Revenues fell by 2.9% to €1,228 million (2006: €1,265 million) while sales volume increased by 2.4% to 102,467 units (2006: 100,064 units). The EBIT margin generated by the motorcycle business improved to 6.5% (2006: 5.9%), while RoCE increased to 18.2% (2006: 17.7%).
 
BMW Financial Services¡¯ profit before tax, at €743 million (2006: €685 million), was 8.5% ahead. Revenues rose by 25.8% to €13,940 million (2006: €11,079 million). At the year-end, 2.63 million lease and financing contracts were in place with dealers and retail customers, an increase of 15.8%. The proportion of new BMW and MINI cars financed by the Financial Services segment increased to 44.7% (2006: 42.4%).
 
Capital expenditure was little changed in 2007, totalling €4,267 million (2006: €4,313 million). This year, the BMW Group is investing US$750 million in an expansion of its Spartanburg plant in the US, which will raise production capacity there from 160,000 to 240,000 units by 2012 and boost the company's total investment in the plant to US$ 4.2 billion.
 
The Group workforce increased slightly during the year, mainly as a result of the acquisition of Husqvarna Motorcycles and two acquisitions made by the Financial Services division. At the end of 2007
From: auto industry.uk/news

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