Against what it characterised as a background of challenging conditions — particularly in export markets — BMW Motorrad notably under-performed during the three quarters of 2016 to 30 September, reports BDN financial editor Roger Willis.
Nine-monthly global retail sales of BMW motorcycles and maxiscooters increased by 3.2% to 116,044 units. But resultant revenue was only 0.4% up at £1.47bn, due mainly to negative foreign currency translation. And, across the same period, production was cut back by 3% to 115,843 units. That total included 1886 samples of the new sub-500cc G310R manufactured under contract by Indian partner TVS Motor, though. So, on a like-for-like basis compared with the equivalent period in 2015, the reduction was actually 4.6%.
European sales overall were 4.5% up to 72,205 units. BMW’s German domestic market led the field, adding just 1.7% to 19,136 units. France and Italy posted stronger growth, respectively improving by 6.6% (11,139 units) and 6.4% (10,569 units). However, UK sales were 1.7% down on 7366 units. Figures were far worse in the struggling US market. Sales there plummeted by 18.1% to 10,948 units.
Operating profit from bike operations over the nine months dropped sharply, 17.9% down to £199.5m. Pre-tax profit fell by 17.7% to £198.6m. The company attributed such decline to a surge in upfront expenditure on model-range expansion and an associated 10.4% increase in its workforce to 3399 employees. Â
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