Bmw group1 overwiew

FINANCIAL DATA

As was already mentioned, the BMW Group entered the 2000-year with the net loss of 2.487 million euro. The main indicators of BMW financial performance in two year prospective are listed in the Exhibit 1.

The automobile production by BMW Group in 1999 was down by 5%, more than 1 147 400 units, compared to the previous year because of Rover’s stocks reduction. Deliveries by the BMW Group remained at the same level, with total sales of BMW, Rover, Land Rover, MG, and MINI automobiles amounting to more than 1 180 400 units.
Due to the growing sales of BMW Automobiles segment sales of the BMW Group in fiscal 1999 increased by 6.6 % to 34 402 million euro.
Cost of production was up over the previous year’s figure by 6.1% to 28 757 million euro. The share of production costs in sales was down by 0.4%. The cost of sales and general administration increased by a total of 13.4%.
Despite of the declining result in the Rover Automobiles segment, the result of the BMW Group’s ordinary business was up by 4.7% to 1 111 million euro. After deduction of profit-related and other taxes the BMW Group’s annual surplus before the extraordinary result was 663 million euro, 43.5% over the previous year.
Investments by the BMW Group amounted to 2.155 million euro, remaining at almost exactly the same level as the year before. These funds were invested in the preparation of new models, the modernization and production facilities. These investments were financed fully trough the Group’s cash flow. The BMW Group continues to rank at the top of the automotive industry in investment value.
Representing ROE into the chain of factors (See Figure 2) we can conclude in a favor of highly positive and increasing financial leverage in the analyzed period which means very efficient and profitable use of the debt by the company.
FIGURE 2 Du Pont analysis

		Computed finance leverage