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BMW Reports Excellent Global Profits For 2007 But No Records
As well as achieving new sales volume and revenues records in 2007, the BMW Group also achieved its earnings target for the year, reflecting the continued success of its business strategy.

Profit before tax, at euro 3,873 million (2006: euro 4,124 million), was 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 the British engine manufacturer, Rolls-Royce plc, the profit before tax, as previously announced, was 0.6% higher than one year earlier. The profit before financial result (EBIT) rose by 4.0% to euro 4,212 mil-lion (2006: euro 4,050 million).

As a result of the one-time effect of the corporate tax reform in Germany, the net profit also rose by 9.0% to a new all-time high level of euro 3,134 million (euro 2,874 million). Group revenues climbed by 14.3% to euro 56,018 million (2006: euro 48,999 million) on the back of sharp rise in sales volume and thanks to the dynamic growth of financial services business.

"2007 was a successful year for the BMW Group. We achieved all the targets that we had set ourselves", commented Norbert Reithofer, Chairman of the Board of Management of BMW AG, on Thursday in Munich. "Even though 2007 was another successful financial year, we have to make sure that the BMW Group is fit for the future in the light of the major challenges that we are facing. All of the measures adopted in conjunction with our Number ONE strategy are aimed at safeguarding the BMW Group's future and increasing its value", he added.
The BMW Group again had to contend with high costs resulting from unfavour-able developments on the foreign exchange and raw material markets in 2007. Efficiency improvement measures and strong business growth, however, en-abled the BMW Group to offset this impact to a large extent.

Shareholders to participate significantly more in success of business

The Board of Management and the Supervisory Board will propose at the Annual General Meeting to be held on 8 May 2008 that the dividend per share of com-mon stock be increased by 51.4% to euro 1.06 (2006: euro 0.70) and that the dividend per share of preferred stock be increased by 50.0% to euro 1.08 (2006: euro 0.72). "We also want our shareholders to be able to participate significantly more in the success of the BMW Group in the future", added Reithofer.

BMW Group aiming for sales volume records for all three brands in 2008

After the sales volume record in 2007, the BMW Group is targeting further sales volume growth in 2008 with the aid of its strong brand and product portfolio: "The BMW Group is again aiming to achieve sales volume growth for all three brands in 2008 and hence to retain its position as the world's leading premium manufacturer", emphasised Reithofer.

Automobiles segment earnings increased in 2007

The profit before tax of the Automobiles segment for the financial year 2007 improved by 7.3% to euro 3,232 million (2006: euro 3,012 million) despite the adverse currency factors and high raw material prices referred to above. The EBIT improved by 12.9% to euro 3,450 million (2006: euro 3,055 million). The EBIT margin was unchanged at 6.4%. Revenues increased by 12.7% to a new all-time high level of euro 53,818 million (2006: euro 47,767 million), therefore growing at a faster pace than sales volume. The return on capital employed (RoCE) improved to 22.8% (2006: 21.7%).

The total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers in 2007 also 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). This means that the BMW Group fully achieved the upper single-digit sales growth rate target set for the full year 2007.

One of the major contributing factors for the good performance was the Effi-cientDynamics package which is helping to reduce fuel consumption and CO2 emissions. Customers are also benefiting from this innovative technology in many MINI models. More than 450,000 BMW and MINI brand cars equipped with EfficientDynamics 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, surpassing the previous year's level (1,185,088 units) by 7.7%. The MINI also recorded good growth with the retail sales volume rising by 18.5% to 222,875 units (2006: 188,077 units). Rolls-Royce increased its sales volume figures for the fourth year in succession and remains the undisputed market leader in the ultra-luxury segment. Rolls-Royce Motor Cars handed over 1,010 vehicles (2006: 805 vehicles) to custom-ers in 2007 (+ 25.5%), therefore achieving a four-figure annual sales volume figure for the first time.

Motorcycles business continues to perform well

The Motorcycles segment's earnings performance again made good progress in 2007, primarily thanks to process optimisation and efficiency improvements. The segment profit before tax rose by 7.6% to euro 71 million (2006: euro 66 million). Revenues fell by 2.9% to euro 1,228 million (2006: euro 1,265 million) while sales volume increased by 2.4% to 102,467 units (2006: 100,064 units). The EBIT margin generated by motorcycle business improved to 6.5% (2006: 5.9%), while the RoCE increased to 18.2% (2006: 17.7%).

Financial services business continues to perform dynamically

The Financial Services segment continued to perform dynamically in 2007 de-spite less favourable refinancing conditions. Segment profit before tax, at euro 743 million (2006: euro 685 million), was 8.5% ahead of the previous year. Revenues rose by 25.8% to euro 13,940 million (2006: euro 11,079 million). At the year-end, 2.63 million lease and financing contracts were in place with deal-ers and retail customers, representing 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 almost at previous year's level

Capital expenditure in 2007 totalled euro 4,267 million (2006: euro 4,313 million) and was therefore almost at the previous year's level. Capitalised development costs recognised as assets in accordance with IAS decreased by 13.2% to euro 1,333 million (2006: euro 1,536 million) reflecting the lower volume of series development projects. Capital expenditure for property, plant and equipment and other intangible assets increased by 5.7% to euro 2,934 million (2006: euro 2,777 million), partly in connection with the expansion of the production network. The capital expenditure ratio of the BMW Group went down to 7.6% (2006: 8.8%).

Slight increase in workforce

The workforce increased slightly during the year, mainly as a result of the acqui-sition of Husqvarna Motorcycles and two acquisitions made by the Financial Ser-vices segment. At the end of 2007, the worldwide workforce comprised 107,539 employees (31 December 2006: 106,575 employees), an increase of 0.9%.


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BMW Reports Excellent Global Profits For 2007 But No Records



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1970toyotamarc1970toyotamarc - 3/14/2008 12:28:05 PM
0 BoostDrop the Boost Up the Boost
Alternate headline, "BMW Profits Down 6.1%"

Are you on their payroll?

I do not wish ill on BMW, but lets be reasonable here. This site has got to stop being their PR hacks.

reply to this comment
kthorkthor - 3/14/2008 2:12:00 PM
+2 BoostDrop the Boost Up the Boost
BMWs profits were 94% of their record year and you have yourself deluded that it's bad news?! Geniuses.


TeknikTeknik - 3/14/2008 1:34:55 PMView My AgentSpace
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Autospies is partially payed by BMW as I have found out recently. You will never see a negative headline regarding the company on this website, even if the news is bad. BMW will not allow this website to publish bad news about the company.

reply to this comment
VISOVISO - 3/14/2008 2:08:13 PM
-1 BoostDrop the Boost Up the Boost
Whoa! Then what's the point of this site if it cannot be impartial. I do notice they always print negative news regarding Audi.


kthorkthor - 3/14/2008 2:13:31 PM
0 BoostDrop the Boost Up the Boost
teknik, you are privy to this inside information how? Oh, you just made it up... I see.


TeknikTeknik - 3/14/2008 2:26:40 PMView My AgentSpace
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Yes, I am privy to that information, sorry you are not.

They put the smallest negative comments that they can find for other manufactures as major headlines, with the exception of BMW.

Agent001 has already stated that he has a bias for the company, so the positive PR spin should not be a surprise to anyone here.


enthusiastx11enthusiastx11 - 3/14/2008 4:09:43 PM
+5 BoostDrop the Boost Up the Boost
are you kidding?

what about all the free cars from lexus they're always driving?

and all the lexus ads all over this site?


LarryLarry - 3/14/2008 3:34:38 PM
0 BoostDrop the Boost Up the Boost
Profit down 6% is a great year,if BMW fans remember they benefited from a sale of Rolls Royce stock 375 million Euro to set a record in 2006 to set their profit record. If you factor in how much money BMW has lost on the Euro exchange rate they are still successful. BMW is not like Audi, Audi is just a divison of the Volkwagen Group (99% owned by VW according to wiwipedia), BMW is it own independent company, and if Merecedes did not sell off Chryler they would have lost money again. VW Group in 2005 lost millions, Most Auto companies wished they had BMW type success.

reply to this comment
VISOVISO - 3/14/2008 5:50:41 PM
+1 BoostDrop the Boost Up the Boost
Yawn!


S4cabriofoxoneS4cabriofoxone - 3/15/2008 1:26:05 PMView My AgentSpace
+2 BoostDrop the Boost Up the Boost
http://www.vwgroupsupply.com/b2b/vwb2b_folder/supplypublic/en/brands/audi/hq_and_plants/audi_company_board.html

AUDI AG

Larry, I don't know if there's something wrong with you or if you just can't understand this, but A DIVISION is when a company is controlled by another company, i.e. Toyota and Lexus. Toyota controls Lexus, and there is no Lexus CEO or Lexus board. However, there is a separate Audi CEO and a completely separate board, as well as there being a trade of Audi stock instead of VW stock. It is a subsidiary, but it is also its own corporation, not a "division."


1970toyotamarc1970toyotamarc - 3/14/2008 5:12:31 PM
-2 BoostDrop the Boost Up the Boost
as the old song says....spin spin sugar

reply to this comment
amazinBimmeramazinBimmer - 3/15/2008 12:47:33 PM
-1 BoostDrop the Boost Up the Boost
VISOJackass.. why yawn.. please repond to larry's post.

reply to this comment
VISOVISO - 3/15/2008 10:49:03 PM
+2 BoostDrop the Boost Up the Boost
I did...and I'll respond to you as well..Yada Yada Yada. You and Larry are like a broken record. Spin the anti-Audi BS all day long with lies. Luckily, I have tall boots to waddle through your Sh#t.
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