wikedgolf
08-04-2004, 10:28 AM
BMW Posts Record Quarterly Net on 5-Series, X3 Models
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Aug. 4 (Bloomberg) -- Bayerische Motoren Werke AG, the world's second-largest maker of luxury cars, reported its biggest quarterly profit ever as the 5-Series car and X3 sport-utility vehicle won customers from DaimlerChrysler AG's Mercedes-Benz.
Net income in the second quarter rose to 671 million euros ($807 million), or 99 cents a share, from 568 million euros, or 84 cents, Chief Financial Officer Stefan Krause said on a conference call. Revenue climbed 16 percent to 11.9 billion euros.
Demand for 5-Series sedans helped BMW take market share from Mercedes, whose first-half sales fell 4 percent. Chief Executive Helmut Panke, 57, said he expects the company to report record profit and sales for the full year as it introduces 10 models, including the Mini convertible and 1-Series hatchback.
``BMW's model line-up is better positioned than that of Mercedes-Benz and they are reaping the fruit,'' said Michael Raab, an analyst at Sal Oppenheim who drives a BMW Z4. ``Mercedes is trailing BMW by a year with new models.''
BMW expects 2004 vehicle sales to grow as much as 9 percent and is ``very optimistic'' about demand in the second half, Panke told journalists on the conference call. BMW's six-month unit sales rose 8.5 percent to 590,983 vehicles.
Shares of BMW fell as much as 1.14 euros, or 3.1 percent, to 35.90 euros and were down 3 percent at 35.93 euros as of 1:42 p.m. in Frankfurt. DaimlerChrysler shares also fell as much as 1.9 percent as crude oil futures rose to a record in New York on concern OPEC, the source of more than a third of the world's oil, will be unable to boost production enough to meet rising demand.
Share Price
The shares fell today as some investors sold their BMW shares, which rose 14 percent between March 23 and yesterday, said Sal Oppenheim's Raab. Earnings beat the 647 million-euro median estimate of analysts surveyed by Bloomberg News.
``Results were very good but the market has been expecting these numbers and that's reflected in the price,'' said Susan Levermann, who helps manage about 5 billion euros of German equities at DWS Investment and holds BMW shares.
The automotive division, the company's main business, boosted pretax profit 26 percent in the quarter to 971 million euros. Vehicle deliveries increased 13 percent to 321,010 units, while production surged 20 percent.
Unit sales in July rose between 4 percent and 5 percent, said Panke during the conference call. BMW-brand sales increased about 7 percent, while Mini-brand sales were below last year's figures. Sales will rise this month in the U.S. after declining in July.
`Good' Results
``On all levels, this is a good set of results,'' said Joerg Schaefer, a fund manager at AMB Generali in Cologne, which manages the equivalent of $6.3 billion. ``Hopefully, they will be able to maintain this good growth.''
Sales of the 5-Series increased 47 percent to 60,434 cars in the quarter. Sales of the X3, which wasn't on sale in the same quarter last year, reached 22,143 vehicles.
The new version of the 5-Series, designed by American Chris Bangle and introduced last summer, is 66 millimeters (2.6 inches) longer and has 13 percent more trunk space than the previous model. The car is meant to lure buyers in the U.S., which accounts for a quarter of sales at BMW.
BMW is also trying to attract younger customers with the new 1- Series, which will be in showrooms in September. The compact car competes with Volkswagen AG's Golf and has a starting price of 19,800 euros in Germany for the version with a 1.6 liter engine.
Adding Extras
The company expects customers adding extras to help increase the profit margins on the 1-Series. Mini buyers spend an extra 2,500 euros on average on additional features when they buy a new car. The average Mini price is 21,000 euros in Europe.
The new convertible Mini has a 4-cylinder, 115-horsepower engine and a fabric roof that retracts at the push of a button in less than 30 seconds. The car has redesigned headlights that adjust gradually to darkness and more space between the driver and passenger seats.
Competition from Mercedes, the world's largest luxury-car maker, may increase as the unit of Stuttgart, Germany-based DaimlerChrysler introduces new versions of the M-Class sport- utility vehicle and the S-Class sedan.
Mercedes's second-quarter operating profit fell 18 percent to 703 million euros. DaimlerChrysler's second-quarter earnings rose fivefold to 554 million euros. The company last month reached an agreement with German workers to work longer hours in exchange for job guarantees which will save the company 500 million euros in annual costs.
At BMW's financial services division, which provides loans and banking services to customers, pretax profit rose 15 percent to 136 million euros. New business, or the number of contracts signed, in the quarter increased 15 percent to 460,837. The proportion of new vehicles financed or leased by the division rose 0.2 percentage point to 39.6 percent.
BMW-brand vehicle sales increased 14 percent in the quarter to 273,429, while Mini-brand cars rose 7.6 percent 47,402. A total of 441,000 Mini models have been sold since the car was launched in July 2001, BMW said.
To contact the reporter on this story:
Jeremy Van Loon in Frankfurt at jvanloon@bloomberg.net.
To contact the editor responsible for this story:
Dan Stets at dstets@bloomberg.net.
Last Updated: August 4, 2004 07:57 EDT
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Aug. 4 (Bloomberg) -- Bayerische Motoren Werke AG, the world's second-largest maker of luxury cars, reported its biggest quarterly profit ever as the 5-Series car and X3 sport-utility vehicle won customers from DaimlerChrysler AG's Mercedes-Benz.
Net income in the second quarter rose to 671 million euros ($807 million), or 99 cents a share, from 568 million euros, or 84 cents, Chief Financial Officer Stefan Krause said on a conference call. Revenue climbed 16 percent to 11.9 billion euros.
Demand for 5-Series sedans helped BMW take market share from Mercedes, whose first-half sales fell 4 percent. Chief Executive Helmut Panke, 57, said he expects the company to report record profit and sales for the full year as it introduces 10 models, including the Mini convertible and 1-Series hatchback.
``BMW's model line-up is better positioned than that of Mercedes-Benz and they are reaping the fruit,'' said Michael Raab, an analyst at Sal Oppenheim who drives a BMW Z4. ``Mercedes is trailing BMW by a year with new models.''
BMW expects 2004 vehicle sales to grow as much as 9 percent and is ``very optimistic'' about demand in the second half, Panke told journalists on the conference call. BMW's six-month unit sales rose 8.5 percent to 590,983 vehicles.
Shares of BMW fell as much as 1.14 euros, or 3.1 percent, to 35.90 euros and were down 3 percent at 35.93 euros as of 1:42 p.m. in Frankfurt. DaimlerChrysler shares also fell as much as 1.9 percent as crude oil futures rose to a record in New York on concern OPEC, the source of more than a third of the world's oil, will be unable to boost production enough to meet rising demand.
Share Price
The shares fell today as some investors sold their BMW shares, which rose 14 percent between March 23 and yesterday, said Sal Oppenheim's Raab. Earnings beat the 647 million-euro median estimate of analysts surveyed by Bloomberg News.
``Results were very good but the market has been expecting these numbers and that's reflected in the price,'' said Susan Levermann, who helps manage about 5 billion euros of German equities at DWS Investment and holds BMW shares.
The automotive division, the company's main business, boosted pretax profit 26 percent in the quarter to 971 million euros. Vehicle deliveries increased 13 percent to 321,010 units, while production surged 20 percent.
Unit sales in July rose between 4 percent and 5 percent, said Panke during the conference call. BMW-brand sales increased about 7 percent, while Mini-brand sales were below last year's figures. Sales will rise this month in the U.S. after declining in July.
`Good' Results
``On all levels, this is a good set of results,'' said Joerg Schaefer, a fund manager at AMB Generali in Cologne, which manages the equivalent of $6.3 billion. ``Hopefully, they will be able to maintain this good growth.''
Sales of the 5-Series increased 47 percent to 60,434 cars in the quarter. Sales of the X3, which wasn't on sale in the same quarter last year, reached 22,143 vehicles.
The new version of the 5-Series, designed by American Chris Bangle and introduced last summer, is 66 millimeters (2.6 inches) longer and has 13 percent more trunk space than the previous model. The car is meant to lure buyers in the U.S., which accounts for a quarter of sales at BMW.
BMW is also trying to attract younger customers with the new 1- Series, which will be in showrooms in September. The compact car competes with Volkswagen AG's Golf and has a starting price of 19,800 euros in Germany for the version with a 1.6 liter engine.
Adding Extras
The company expects customers adding extras to help increase the profit margins on the 1-Series. Mini buyers spend an extra 2,500 euros on average on additional features when they buy a new car. The average Mini price is 21,000 euros in Europe.
The new convertible Mini has a 4-cylinder, 115-horsepower engine and a fabric roof that retracts at the push of a button in less than 30 seconds. The car has redesigned headlights that adjust gradually to darkness and more space between the driver and passenger seats.
Competition from Mercedes, the world's largest luxury-car maker, may increase as the unit of Stuttgart, Germany-based DaimlerChrysler introduces new versions of the M-Class sport- utility vehicle and the S-Class sedan.
Mercedes's second-quarter operating profit fell 18 percent to 703 million euros. DaimlerChrysler's second-quarter earnings rose fivefold to 554 million euros. The company last month reached an agreement with German workers to work longer hours in exchange for job guarantees which will save the company 500 million euros in annual costs.
At BMW's financial services division, which provides loans and banking services to customers, pretax profit rose 15 percent to 136 million euros. New business, or the number of contracts signed, in the quarter increased 15 percent to 460,837. The proportion of new vehicles financed or leased by the division rose 0.2 percentage point to 39.6 percent.
BMW-brand vehicle sales increased 14 percent in the quarter to 273,429, while Mini-brand cars rose 7.6 percent 47,402. A total of 441,000 Mini models have been sold since the car was launched in July 2001, BMW said.
To contact the reporter on this story:
Jeremy Van Loon in Frankfurt at jvanloon@bloomberg.net.
To contact the editor responsible for this story:
Dan Stets at dstets@bloomberg.net.
Last Updated: August 4, 2004 07:57 EDT
Advertisement: Save up to 25% on books from Bloomberg Press.
<hr>
Related info:
http://abcnews.go.com/wire/Business/ap20040804_702.html#photocap