BMW Group Achieves its Best Result Ever in The Year of its Reorientation

Automotive Intelligence, the web for automotive professionals

This Week:

© 1998 - 2001 Copyright &
Disclaimer
Automotive Intelligence,
www.autointell.com
All Rights Reserved .
For questions please contact
editor@autointell.com

News of March 21, 2001

BMW Group Achieves its Best Result Ever in The Year of its Reorientation

BMW 3 series convertible

Photo: BMW

Munich, Germany - The successful reorientation of the BMW Group and its consequent concentration on premium segments of the markets has contributed to a new record business result in the year 2000. The profit from ordinary activities increased by 50% to euro 1,663 million (previous year: euro 1,111 million). This significantly exceeds the previous record result of euro 1,293 million achieved in 1997.

The profit for the financial year of the BMW Group was euro 1,026 million, a new all-time high in the history of the Group, exceeding the previous year's figure of euro 663 million, before extraordinary result.

The result in the BMW Automobiles Segment was up once again by 13% to euro 2,380 million (previous year: euro 2,106 million).

The BMW Motorcycles Segment continued to develop positively. The result in this segment increased by 50% to euro 27 million (previous year: euro 18 million).

The Financial Services Segment made a significant contribution to the overall success of the BMW Group, increasing its result by 9% to euro 345 million (previous year: euro 316 million).

The Rover Automobiles Segment, representing the operative business of Rover Cars/Land Rover up to the respective sale dates, shows, as already reported in the Interim Report in summer 2000, a loss of euro 762 million (total year 1999: euro 1,207 million); this loss is included in the total result of euro 1,663 million.

The DVFA result per stock is euro 1.63 (previous year: euro 1.01).

Provisions for the End-of-Life Vehicle Directive

The annual accounts of 1999 did already contain, under the Segment "Miscellaneous, Consolidated Companies", provisions for the costs of dismantling used cars of euro 128 million. In 2000, a further euro 112 million were set aside, and the total amount of the provisions of euro 240 million was allocated to the Segment BMW Automobiles. Herewith the necessary provisions are fully taken.

Shareholders and Workforce benefit from record result

The Board of Management and Supervisory Board propose to the Annual General Meeting to use the unappropriated profit available for distribution in BMW AG of euro 310 million (1999: euro 269 million) for the payment of a dividend on the equity entitled to dividends (622.2 million common stock and 48.5 million preferred stock, each with a nominal value of euro 1). This dividend represents an increase of 15% to euro 0.46 per common stock (1999: euro 0.40) and of 14.3% to euro 0.48 per preferred stock (1999: euro 0.42). The dividend increase proposed reflects the successful development of the BMW Group in the year 2000. The profit share of the workforce of BMW AG is based on the size of the dividend and will thus also increase.

Investments once again financed by cash flow

At euro 2,138 million, the investments made by the BMW Group were about the previous year's level (1999: euro 2,155 million). As in previous years, the investments were financed completely from the cash flow amounting in the year 2000 to euro 3,198 million (previous year: euro 2,807 million).

BMW Group confident also for the year 2001

The year 2001 has started successfully for the BMW Group. Deliveries to customers in the first two months of this year were increased by around 10%.

Professor Dr.-Ing. Joachim Milberg, Chairman of the Board of Management of the BMW Group, stated: "We expect, that with the world car and motorcycle markets consolidating, the BMW Group will successfully continue to develop deliveries, sales and profits."

Professor Dr.-Ing. E.h. Berthold Leibinger hands over his Supervisory Board mandate to Professor Dr. Jürgen F. Strube

At the end of the Annual General Meeting, Professor Dr.-Ing. E.h. Berthold Leibinger will be leaving the Supervisory Board, as his period of office has come to an end. It is proposed to the Annual General Meeting that Professor Dr. Jürgen F. Strube, Chairman of the Board of BASF Aktiengesellschaft, Ludwigshafen, is elected to the Supervisory Board.

(March 15, 2001)

[Homepage] [ News] [ Companies] [ Management] [ Publications] [ Events] [ Careers]
[Services] [Discussion] [ Guestbook] [ Search]