The BMW Group announced it set a sales volume and earnings record for the second quarter of 2016. It was also the 25th consecutive quarter the company reported sustainable profitability in its automotive sector.
Group sales – including BMW, Mini and Rolls-Royce – jumped by 5.7% in the quarter by selling 605,534 which is a new quarterly high for the company.
Second quarter revenues were up 4.5% to over 25 billion euros with 2.7 billion euros profit – which was 7.9% higher than the second quarter of 2015.
“We sold more vehicles in the second quarter than ever before and achieved record earnings. We are growing profitably while simultaneously implementing our strategy step by step,” said Harald Krüger, chairman of the Board of Management of BMW AG, in a press release from Munich.
Six-month sales were up by 5.8% as the company reported selling 1.16 million vehicles. Six-month revenues were also up by 2.3% to 45 billion euros. The BMW Group’s margin in the auto segment was also up by 9.5%, marking the 25th straight quarter the margin was between 8 and 10%.
“A look at the EBIT margin for the past 25 quarters shows that we do not only focus on short-term results. More importantly, we concentrate on what we consider to be our primary responsibility: delivering consistently good results, even in volatile times, in order that we can finance and shape the company’s future based on our own underlying strength,” said Friedrich Eichiner, member of the Board of Management responsible for finance.
During the quarter, sales of the South Carolina-produced X3 notched up 16.1%, hitting over 77,000 vehicles sold. The BMW 7 Series was up 31.7% in sales while the X1 sales jumped 61.7%. BMW’s line of electric models, including the iPerformance models accounted for 4% of global group sales during the quarter with sales in the Netherlands and Scandinavia both up over 13%.
Mini and Rolls-Royce sales were also up globally during the quarter as Mini recorded a 5.4% increase in sales and Rolls-Royce sales were up 14.7%.
Europe and Asia continued to be strong markets for the company. In Europe, sales jumped by 11.2% for the first six months of the year as sales in Great Britain, France and Italy all grew by double-digit percentage points. Sales on the Chinese mainland and Japan both grew by over 7%.
In its quarterly report, the BMW Group also noted a 3.4% increase in its workforce as the company said it continues to recruit engineers, software and IT specialists and other skilled workers “in order to keep pace with the constantly growing demand for BMW Group vehicles and to forge ahead with creative innovations … ”
Looking ahead to the rest of the year, the company said it expects to hit its proposed sales targets.
“We forecast slight increases, and hence new record figures, for automotive segment sales volume and profit before tax in 2016,” said Krüger.
|The BMW Group – an overview||2nd quarter
|2nd quarter 2015||Change in %|
|Sales volume Motorcycles||Units||46,966||47,048||-0.2|
|The BMW Group – an overview||1st half year 2016||1st half year 2015||Change in %|
|Sales volume Motorcycles||Units||80,754||78,418||3.0|