Let’s take a look at the BMW Group’s report card for the first 6 months of 2011, the results might surprise you. With concerns ranging from the sizeable national debt to political unrest in certain regions of the world down to the present volatile business environment and the stability of global currencies, things are looking rather scary
With concerns ranging from the sizeable national debt of many countries to political unrest in certain regions of the world down to the present volatile business environment and the stability of global currencies, things are looking rather scary. You would expect that companies all over the world would be window dressing their forecasts, predicting conservatively and hoping that their results are better than expected. BMW AG however is not only doing well, it is in fact exceeding expectations and as a result will be raising their forecast for the business year 2011. This comes straight from Dr. Norbert Reithofer who is the Chairman of the Board of Management of BMW AG. It doesn’t get any more “official” than that.
The newly revised forecast includes:
- Record sales of over 1.6 million cars.
- A record pre-tax result on the group level, which significantly exceeds last year’s result.
- An EBIT margin in the Automobile Segment of more than 10%.
- A considerable increase in the result before taxes of the Financial Services segment.
Mr. Reithofer in a statement said “Our cars and motorcycles are definitely trendsetters. Their design language and cutting-edge innovations are highly desired by our customers around the world.” If more proof was needed, then consider the fact that the first six months of 2011 were the best half-year ever in BMW AG’s history. This means that BMW sold more cars and motorcycles in the first two quarters of 2011 than any other previous year during the same time period. Here are some key financials for the first half of 2011:
- Pre-tax result of 4.5 billion Euros.
- Net profit on Group level of 3 billion Euros.
- EBIT (earnings before interest and taxes) margin in the Automobile segment of 13.3%
According to Mr. Reithofer, BMW AG managed to grow in almost all automotive markets in the first six months of 2011. He attributes these strong financial numbers to the quality with which the cars themselves are produced, their innovation, trendsetting design and their highly efficient engines.
Not only is he right though, but the above mentioned remarks make for some very solid points that seem to resonate well with new customers and keeps previous owners coming back for more. And even better, if we look at the global automotive market in comparison to that of BMW Group, we see some very clear signs of healthy, positive growth.