BMW Motorrad Third-Quarter Results
BMW recently reported their 2010 third quarter reports, showing positive results in motorcycle sales, along with a raise in motorcycle production.According to the report, BMW sold 24,493 BMW motorcycles during the third quarter 2010, up 7.7 percent from the same quarter in 2009. The number of motorcycles sold during the period from January to September 2010 rose by 16.9 percent to 81,508 units.With most international motorcycle markets actually contracting, BMW was able to strengthen their competitive position, and are now market leaders in the 500 \cc plus segment in countries such as Germany, Italy, Spain, the Netherlands, Belgium, Austria and South Africa.BMW’s sales of motorcycles in Europe during the first nine months of 2010 rose by 18.1 percent to 57,846 units, with the improvements in France (7,264 units / + 31.8 percent) and Spain (5,900 units / + 21.1 percent) particularly strong.Sharp growth was, however, also recorded in Germany (13,614 units / + 17.2 percent), Italy (12,954 units / + 14.7 percent) and Great Britain (5,833 units / + 16.1 percent).The number of motorcycles sold in the USA from January to September 2010 increased by 3.9 percent to 7,850 units. During the same period BMW sold 2,192 units in Japan (+ 5.3 percent). The number of motorcycles sold in Brazil doubled to 2,368 units (+ 99.7 percent).BMW Motorcycle Production RaisedThird quarter production of BMW motorcycles was increased by 29.8 percent to 20,311 units in line with growing demand. Production for the ninemonth period was raised by 25.1 percent to 82,426 units.Significant improvement in revenues, and earnings of rising sales volume figures also had a positive impact on revenues and earnings reported by the motorcycle segment.Thirdquarter revenues grew by 21.8 percent to euro 291 million, while revenues for the ninemonth period climbed by 25.0 percent to euro 1,081 million. The segment EBIT was euro 2 million (2009: negative EBIT of euro 3 million) for the period from July to September and euro 88 million (+ 72.5 percent) from January to September.Profit before tax also improved, rising by euro 5 million (2009: loss before tax of euro 5 million) for the third quarter and to euro 83 mil lion (+ 84.4 percent) for the ninemonth period under report.BMW Motorrad Workforce Virtually UnchangedThe BMW Group employed 2,895 people in the motorcycles segment at Sept. 30 2010, practically unchanged from the same reporting date one year earlier (- 0.1 perent).Motorcycle Markets in 2010As already forecast at the end of the second quarter, international motorcycle markets are unlikely to recover significantly in the last three months of the year. The 500cc plus segment is expected to contract worldwide over the full year at a rate approaching double digits.The world’s motorcycle markets in the 500 c plus class relevant for the BMW Group were 11.1 percent down on the previous year for the ninemonth period under report.In Europe, all markets contracted with the exception of Spain during the period from January to September 2010. Sales volume on the German market for 500 cc plus motorcycles fell by 6.6 percent during the nine months under report.Shortfalls against the previous year were also recorded in Italy (- 13.4 percent), France (- 5.6 percent) and Great Britain (- 18.1 percent).Spain was the only market to show growth, rebounding with an 18.0 percent increase after the extremely steep slide recorded one year earlier. The markets for 500cc plus motorcycles also failed to recover in the USA (-14.1 percent) and Japan (- 8.9 percent) during the ninemonth period.BMW Motorrad Canada ReportBMW Motorrad Canada reported retails in October of 104 units, an increase of 26.8 percent over the same period in 2009. BMW Motorrad breaks through CY2009 total retails, with year-to-date sales of 1,865 units an increase of 7.9 percent over last year.