|Munich - 1999 was a successful year overall in operative terms
for the BMW Group. The segment BMW Automobiles achieved the best result ever in the
history of the Company. Despite the declining result of Rover Automobiles in 1999, the
overall result of the Company's ordinary business improved by 4.7 per cent to euro 1,111
million (previous year: euro 1,061 million). Following deduction of profit-related and
other taxes amounting to euro 448 million, the BMW Group's annual net income prior to the
extraordinary provision is euro 663 million (previous year: euro 462 million), the highest
annual surplus ever achieved by the Company, 43.5 per cent above the previous year's
figure. The BMW Group has taken substantial provisions for the necessary restructuring
process and further foreseeable risks with Rover. Amounting to euro 3,150 million, these
extraordinary provisions result in a deficit for the year of euro 2,487 million.
Dr.-Ing. Joachim Milberg, Chairman of the Board of Manage-ment of the BMW Group, outlined
the Group's strategy in clear terms: "The BMW Group has repositioned its strategy and
we are once again in a strong and secure position: with the ultra-strong BMW brand, with
the unique potential of the Mini, and with the most exclusive brand in the world -
Rolls-Royce. Clearly, this gives the BMW Group supreme potential for above-average,
profitable growth." Commenting on the annual result of the BMW Group, Dr. Helmut
Panke, Board Member Finance of the BMW Group, was equally clear: "The Board of
Management is confident that the BMW Group will show a net income for the year 2000
significantly higher than in 1999 prior to the extraordinary provision."
BMW Automobiles segment improved once again
The result of ordinary business in the BMW Automobiles segment has improved over the
already excellent figure achieved last year by another 5.1 per cent to euro 2,106 million
(previous year: euro 2,003 million).
By contrast, losses in the segment of Rover Automobiles were up by euro 250 million to
euro 1,207 million (+ 26.1%) on account of conditions in the market, the influence of the
exchange rate, and restructuring measures. In the BMW motorcycle segment business results
also continued to improve, increasing by 12.5 per cent to euro 18 million (previous year:
euro 16 million).
This year the BMW Group is reporting for the last time on business activities in the
aeroengine segment. With the process of con-verting from a development to a production
company being completed in 1999, the loss sustained by BMW Rolls-Royce has dropped
considerably by 37.6 per cent to euro 146 million (previous year: euro -234 million).
Since the beginning of this year the company has been a subsidiary of Rolls-Royce plc and
has been re-established under the name Rolls-Royce Deutschland GmbH.
Financial services are continuing to develop positively, the result generated by this
segment of the BMW Group increasing by 6 per cent to euro 316 million (previous year: euro
BMW Group turnover up once again in 1999
Turnover of the BMW Group in the 1999 year of business was euro 34,402 million
(previous year: euro 32,280 million), equal to an increase by 6.6 per cent over the
previous year. This is primarily due to the increase in BMW vehicle sales as well as the
ongoing trend towards a higher level of equipment in the cars sold.
Turnover with externals and other segments was up in the case of BMW Automobiles by 12
per cent to euro 24,610 million (previous year: euro 21,980 million). Increasing turnover
by almost 2 per cent to euro 8,638 million (previous year: euro 8,466 million), Rover
Automobiles also outperformed the previous year's figure.
BMW motorcycle business once again grew substantially in the year under report, this
time by 17.8 per cent to euro 769 million (previous year: euro 653 million). This also
applies to the aeroengine business by BMW Rolls-Royce GmbH, with turnover increasing by
84.6 per cent to euro 683 million (previous year: euro 370 million).
The financial services business was also successful, showing an increase in turnover
over the previous year by 6.6 per cent to euro 6,153 million (previous year: euro 5,771
Deliveries in 1999 remaining at the previous year's high level
Overall car production by the BMW Group was down from the previous year by almost 5 per
cent to more than 1,147,400 units. This decrease is attributable to the declining demand
for Rover cars and increasing efforts to reduce the stock of Rover models. Production of
BMW brand automobiles, on the other hand, continued to increase, the 3 Series coupé, 3
Series touring, 3 Series convertible, X5 and Z8, Rover 75, and the Land Rover Discovery II
all being ramped up successfully.
Deliveries by the BMW Group remained at the same high level as in the previous year,
total sales of BMW, Rover, Land Rover, MG and MINI vehicles exceeding the figure of over
1,180,400 units. The Group's largest sales markets are Germany, Great Britain, and the
United States. The fastest-growing BMW Group brands were once again Land Rover and BMW,
while delivery of Rover cars continued to decline in 1999.
Dividend remaining stable
The annual net income of BMW AG amounts to euro 269 million (previous year: euro 234
million) and was generated through the Company's operative business. The Board of
Management and the Supervisory Board advise the Annual General Meeting to pay a dividend
of euro 0.40 per ordinary share and euro 0.42 per preference share for a nominal amount in
each case of euro 1.00 on the equity entitled to dividends of euro 622.2 million ordinary
stock and euro 47.2 million preferred stock, thus using the balance sheet profit of BMW AG
of euro 269 million (previous year: euro 234 million) to maintain a 40 per cent dividend
on ordinary stock and 42 per cent on preferred stock also after the changeover to a
nominal stock value of euro 1.00.
The business result of the Company - before extraordinary expenditure - according to
the German DVFA valuation method is euro 677 million (previous year: euro 518 million).
(March 28, 2000)