BMW Group Posts Best Year in History – Ups Dividend

The BMW Group posted sales volume, revenue and earnings records in 2011. Group revenues increased by 13.8% to €68.8 billion (2010: €60.4 b) with net profit soaring 51% to €4.9b. Earnings before interest and taxation of €8.02 b. The total number of BMW, Mini and Rolls-Royce brand vehicles delivered to customers increased by 14.2% to a new record figure of 1,668,982 units (2010: 1,461,166 units).

As a result, BMW Board of Management and the Supervisory Board will propose to shareholders at the Annual General Meeting on 16 May 2012 that the dividend be increased to a record €2.30 (2010: €1.30) per share of common stock and €2.32 (2010: €1.32) per share of preferred stock, equivalent to a payout ratio of 30.7%.

Strong sales of sport utility vehicles and luxury cars, the booming China market and cost cutting were all factors in the blowout year. The BMW Group continues to contradict the conventional wisdom that scale is required to succeed in the global auto industry, since it operates largely in premium segments or gets a premium for its motorcycles on Mini models in other segments.

“The past year has been the best year in the BMW Group’s corporate history. We have achieved new sales volume, revenues and earnings highs, and exceeded our targets“, said Norbert Reithofer, the Chairman of the Board of Management of BMW AG on Thursday in Munich.

The automotive segment also reported record figures for 2011. Revenues increased by 16.8% to €63.2 b (2010: €54,1 b). EBIT jumped by 72% to €7,477 million (2010: €4.3 b) and a profit before tax by 75.5% to € 6.8 b (2010: € 3.8 b). The EBIT margin for the automotive segment was 11.8%, compared to the full-year EBIT margin of “over 10%” previously forecast.

BMW Group 2011

2011

2010

%

Sales volume
Autos 1,668,982 1,461,166 14.2
BMW 1,380,384 1,224,280 12.8
MINI 285,060 234,175 21.7
Rolls-Royce 3,538 2,711 30.5
Motorcycles 113,572 110,113 3.1
BMW 104,286 98,047 6.4
Husqvarna 9,286 12,066 -23.0
Workforce 100,306 95,453 5.1
Revenues € mil 68,821 60,477 13.8
Automotive 63,229 54,137 16.8
Motorcycles 1,436 1,304 10.1
Financial Services 17,510 16,617 5.4
Profit before financial result € mil 8,018 5,111 56.9
Automotive 7,477 4,355 71.7
Motorcycles 45 71 -36.6
Financial Sevices 1,763 1,201 46.8
Profit before tax € mil 7,383 4,853 52.1
Automotive 6,823 3,887 75.5
Motorcycles 41 65 -36.9
Financial Services 1,790 1,214 47.4
Income taxes -2,476 -1,610 53.8
Net profit  € mil 4,907 3,243 51.3
Earnings per share 7.45/7.47 4.93/4.95
Dividend per sharecommon/preferred 2.30/2.32 1.30/1.32

About Kenneth Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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