BMW Group hoping to improve earnings in 2010

In 2010 the BMW Group is aiming to improve the group earnings. After a difficult year for the automotive industry, the German group is “heading into the new business year with cautious optimism and are targeting group earnings well above the level reported for the past year. We want to see visible progress in 2010 in the direction of our profitability targets for 2012”, said Norbert Reithofer, Chairman of the Board of Management of BMW AG at the Annual Accounts Press Conference on Wednesday in Munich. BMW is targeting an EBIT margin for its Automobile segment within an unchanged range of between eight and ten percent for 2012.

For the current year BMW is expecting to sell 1.3 million vehicles and remain as the world’s leading provider of premium cars, thanks to its new products and the expected gradual economic recovery.

In terms of the new models, the new BMW 5 Series, which is being launched at the end of March is expected to be one of the main figures of this recovery, with the German make predicting that it should account for almost one fifth of BMW-brand sales. The new BMW X1 and BMW 5 Series Gran Turismo models should continue to contribute positively to the brand’s sales, together with the MINI Countryman and the revised BMW 3 Series Coupé, 3 Series Convertible and BMW X5.

Although 2009 was a year marked by the worldwide financial and economic crisis, in 2009 BMW’s before tax rose by 17.7% to euro 413 million (2008: euro 351 million). According to the German make this was possible because “We managed to reduce costs in all areas. Our efficiency improvement measures have been bearing fruit, even though the effects of the worldwide financial and economic crisis could still be felt”, explained Reithofer.

For the full year, the Automobile segment of the German Group recorded a negative EBIT of euro 265 million (2008: positive EBIT of euro 690 million). Revenues fell to euro 43,737 million (2008: euro 48,782 million).

In 2009 the BMW Group sold a total of 1,286,310 BMW, MINI and Rolls-Royce brand vehicles, 10.4% less than the1,435,876 units sold in 2008 . This performance enabled the BMW Group to increase its market share in the premium segment and, as previously announced, to retain its position as the world’s leading premium carmaker.