BMW Motorrad Reports Sharply Improved Second-Quarter Earnings

Tuesday, August 3rd, 2010

BMW Motorrad’s earnings increased sharply in the second quarter on the back of a good sales volume performance despite otherwise unfavourable business conditions. Six-month segment revenues rose by 30.7% to euro 439 million (2009: euro 336 million). Profit before financial result (EBIT) for the period rose to euro 54 million (2009: euro 26 million) and the result before tax improved to euro 53 million (2009: euro 24 million). Six-month revenues increased to euro 790 million (2009: euro 626 million/+26.2%). The segment reported an EBIT for the first half of the year of euro 86 million (2009: euro 54 million) and a profit before tax of euro 83 million (2009: euro 50 million).

Sales of BMW brand motorcycles in the second quarter increased by 21.6% to 36,175 units (2009: 29,742 units). During the first half of the year, BMW Motorrad sold 57,015 units (2009: 46,974 units). This corresponds to an increase of 21.4%. The best-seller list was headed by the large, long-distance enduro R 1200 GS, making it the best-sold bike in the 500 cc plus motorcycles segment worldwide. Sales of the S 1000 RR - the first supersport bike manufactured by BMW Motorrad - reached a total of 6,459 units worldwide in the six-month period from January to June (of which 1,223 were sold in June).

Two new luxurious BMW Touring motorcycles, the K 1600 GT and the K 1600 GTL, will be presented to the public for the first time in autumn. For the first time in the segment’s history, both of these models will be fitted with six-cylinder in-line engines

Dr. Friedrich Eichiner, Member of the Board of Management of BMW AG, Finance said “The Motorcycles Segment performed exceptionally well in a difficult market environment. We delivered more than 36,000 BMW motorcycles to customers in the second quarter. Against this market trend, we increased sales by almost 22% from the same period last year.

We were able to improve our competitive position significantly. For instance, we are now the market leader in Europe’s biggest motorcycle markets, Germany and Italy. Most markets in our relevant segment with engines above 500 cubic centimetres showed a decline. Global unit sales in the segment fell by 11%.

We generated a sales volume of 439 million euros in the Motorcycles Segment in the second quarter. We posted an EBIT of 54 million euros.”