After a long run of impressively growing unit sales, turnover and profitability, BMW’s motorcycle division has admitted to a distinctly weak performance in the first quarter of 2018. BDN financial editor Roger Willis reports.
Global retail sales for this three-month period were almost dead flat — up by just 0.6% to 35,858 motorcycles and maxiscooters. Nevertheless, the brand boasted that these numbers represented “a new first-quarter volume record for the seventh year in succession”.
However, Europe overall fell by 6.6% to 21,477 units. Biggest loser was BMW’s German domestic presence, 16.1% in arrears on 4887. Italy sank by 5.9% to 3258 and the UK was 4.8% down to 2510. France flatlined, adding just one extra machine to reach 3697. On the positive side, Spain put on 1.4% to 2247. And, bucking US market grief, sales in America rose by 1.8% to 2919.
Bragging about associated monetary gains proved more difficult, because they were non-existent. Quite the opposite. Revenue was 15.5% lower at £462.7m. Operating profit plunged by 38.4% to £68m. Operating margin dropped from 20.2% to 14.7%. Pre-tax profit was 37.6% down to £68.9m. These declines were attributed to the impact of “current model change in the light of slightly slower production ramp-up of new models” and adverse currency translation effects. Quarterly production actually slumped by 24.2% to 41,284 bikes.