The BMW Group invested substantially in the mobility of the future during the first half of the year, while at the same time firmly continuing on its course of profitable growth. Rigorous implementation of the Group’s Strategy NUMBER ONE > NEXT is playing a key role, as the company shapes the transformation of the automotive sector. Driving this process forward, the BMW Group always remains focused on the needs and desires of its customers and is continuing its ground-breaking work on the four ACES topics (Autonomous, Connected, Electrified and Services/Shared). The BMW Group has also set a decisive course for its future in China, the company’s largest growth market.
As planned, this year the BMW Group has significantly increased its upfront expenditure on future mobility. Research and development expenses over the first six months of 2018 were more than € 300 million higher than in the corresponding period one year earlier and totalled € 2,610 million (+13.6%). As previously reported, full-year R&D expenses are likely to reach up to seven per cent of Group revenues in the current year (2017: 6.2%).
In addition to ramping up production to drive the new model offensive, the BMW Group is focusing on expanding its activities in the fields of electric mobility and autonomous driving. In both cases, the BMW iNEXT will serve as a technological spearhead that sets new standards. It will be presented to the public as a vision vehicle during the second half of 2018 and will be built at the Dingolfing plant from 2021 onwards. This underlines the significance of Germany as a key location for future technologies and a centre of competence for electric mobility.
Increase in workforce size
| The BMW Group – an overview | 1st half year | 1st half year | Change in % | |||||
| 2018 | 2017 | |||||||
| Deliveries to customers | ||||||||
| Automotive | units | 1,242,507 | 1,220,819 | 1.8 | ||||
| Thereof: BMW | units | 1,059,296 | 1,038,030 | 2.0 | ||||
| MINI | units | 181,430 | 181,214 | 0.1 | ||||
| Rolls-Royce | units | 1,781 | 1,575 | 13.1 | ||||
| Motorcycles | units | 86,975 | 88,389 | -1.6 | ||||
| Workforce1 | (compared to 31.12.2017) | 131,636 | 129,932 | 1.3 | ||||
| Automotive segment EBIT margin3 | % | 9.2 | 9.8 | -0.6 %points | ||||
| Motorcycles segment EBIT margin3 | % | 14.8 | 17.4 | -2.6 %points | ||||
| EBT margin BMW Group3 | % | 12.7 | 12.6 | +0.1 %points | ||||
| Revenues3 | € million | 47,717 | 49,691 | -4.0 | ||||
| Thereof: Automotive3 | € million | 41,518 | 42,166 | -1.5 | ||||
| Motorcycles3 | € million | 1,182 | 1,315 | -10.1 | ||||
| Financial Services | € million | 13,815 | 14,090 | -2.0 | ||||
| Other Entities | € million | 3 | 3 | – | ||||
| Eliminations3 | € million | -8,801 | -7,883 | -11.6 | ||||
| Profit before financial result (EBIT) 3 | € million | 5,479 | 5,753 | -4.8 | ||||
| Thereof: Automotive3 | € million | 3,800 | 4,121 | -7.8 | ||||
| Motorcycles | € million | 175 | 229 | -23.6 | ||||
| Financial Services | € million | 1,176 | 1,192 | -1.3 | ||||
| Other Entities | € million | 16 | 12 | 33.3 | ||||
| Eliminations3 | € million | 312 | 199 | 56.8 | ||||
| Profit before tax (EBT) 3 | € million | 6,038 | 6,238 | -3.2 | ||||
| Thereof: Automotive3 | € million | 4,343 | 4,676 | -7.1 | ||||
| Motorcycles | € million | 174 | 228 | -23.7 | ||||
| Financial Services | € million | 1,166 | 1,184 | -1.5 | ||||
| Other Entities | € million | 78 | 19 | – | ||||
| Eliminations3 | € million | 277 | 131 | – | ||||
| Income taxes3 | € million | -1,648 | -1,747 | 5.7 | ||||
| Net profit3,4 | € million | 4,383 | 4,491 | -2.4 | ||||
| Earnings per share2,3 | € | 6.60/6.61 | 6.79/6.80 | -2.8/-2.8 | ||||
The BMW Group’s workforce comprised 131,636 employees at 30 June 2018, 1.3% more than at 31 December 2017. The Group continues to recruit skilled workers and IT specialists in future-oriented areas including digitalisation, autonomous driving and electric mobility.
BMW Group reaffirms targets for the financial year 2018
| The BMW Group – an overview | 2nd quarter | 2nd quarter | Change in % | |||||
| 2018 | 2017 | |||||||
| Deliveries to customers | ||||||||
| Automotive | units | 637,878 | 633,582 | 0.7 | ||||
| Thereof: BMW | units | 541,849 | 534,585 | 1.4 | ||||
| MINI | units | 95,055 | 98,155 | -3.2 | ||||
| Rolls-Royce | units | 974 | 842 | 15.7 | ||||
| Motorcycles | units | 51,117 | 52,753 | -3.1 | ||||
| Workforce1 | (compared to 31.12.2017) | 131,636 | 129,932 | 1.3 | ||||
| Automotive segment EBIT margin3 | % | 8.6 | 10.1 | -1.5 %points | ||||
| Motorcycles segment EBIT margin3 | % | 14.9 | 15.0 | -0.1 %points | ||||
| EBT margin BMW Group3 | % | 11.5 | 11.9 | -0.4 %points | ||||
| Revenues3 | € million | 25,023 | 25,765 | -2.9 | ||||
| Thereof: Automotive3 | € million | 22,192 | 22,165 | 0.1 | ||||
| Motorcycles3 | € million | 658 | 695 | -5.3 | ||||
| Financial Services | € million | 7,141 | 7,044 | 1.4 | ||||
| Other Entities | € million | 1 | 1 | – | ||||
| Eliminations3 | € million | -4,969 | -4,140 | -20.0 | ||||
| Profit before financial result (EBIT) 3 | € million | 2,746 | 2,932 | -6.3 | ||||
| Thereof: Automotive3 | € million | 1,919 | 2,244 | -14.5 | ||||
| Motorcycles | € million | 98 | 104 | -5.8 | ||||
| Financial Services | € million | 607 | 588 | 3.2 | ||||
| Other Entities | € million | 7 | 8 | -12.5 | ||||
| Eliminations3 | € million | 115 | -12 | – | ||||
| Profit before tax (EBT) 3 | € million | 2,873 | 3,058 | -6.0 | ||||
| Thereof: Automotive3 | € million | 2,062 | 2,391 | -13.8 | ||||
| Motorcycles | € million | 96 | 103 | -6.8 | ||||
| Financial Services | € million | 605 | 589 | 2.7 | ||||
| Other Entities | € million | 8 | 23 | -65.2 | ||||
| Eliminations3 | € million | 102 | -48 | – | ||||
| Income taxes3 | € million | -784 | -841 | 6.8 | ||||
| Net profit3,4 | € million | 2,082 | 2,217 | -6.1 | ||||
| Earnings per share2,3 | € | 3.13/3.14 | 3.34/3.35 | -6.3/-6.3 | ||||
The BMW Group is confident of achieving its projected targets for the current financial year – largely driven by its strong brands, its attractive product portfolio and the expectation that international automobile markets will continue their generally upward trend. These favourable factors are offset by extremely high levels of upfront expenditure for new technologies, intense competition and rising personnel expenses. The global political and economic environment is expected to remain volatile.
The BMW Group reaffirms its targets for the full year. Deliveries and revenues for the Automotive segment are both forecast to grow slightly to achieve new highs in 2018. Group profit before tax is being targeted at the previous year’s level. The EBIT margin for the Automotive segment is expected to remain within the target range of between 8 and 10%.
In connection with the planned bundling of its mobility services, the BMW Group has announced that – subject to approval by antitrust authorities in the current year – the establishment of the joint venture will have a one-off valuation and earnings effect and result in an adjustment to the outlook. Under these circumstances, the Group profit before tax for 2018 would be slightly higher than in the previous year. The effect described above has no impact on the EBIT margin of the Automotive segment.Forecasts for the current financial year are based on the assumption that worldwide economic and political conditions will not change significantly.
- Excluding dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time working arrangements and low wage earners.
- Earnings per share of common stock/preferred stock
- 2017 figures were adjusted according to IFRS 15 – see note [5] in quarterly report.
- 2018 figure incl. -7 Mio. € from discontinued operations
- Excluding dormant employment contracts, employees in the work and non-work phases of pre-retirement part-time working arrangements and low wage earners.
- Earnings per share of common stock/preferred stock
- 2017 figures were adjusted according to IFRS 15 – see note [5] in quarterly report.
- 2018 figure incl. -7 Mio. € from discontinued operations