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RECORD YEAR FOR BMW MOTORRAD

BMW Group’s 2013 full-year financial results statement highlights best-ever revenue and unit sales for its motorcycle operations and a strong bottom-line bounce after the previous year’s costly disposal of Husqvarna.

Sales revenue for BMW Motorrad rose by 0.9 per cent to £1.25bn. However, adjusted for foreign exchange factors, the company says this represented a 4.4 per cent improvement. 

This was as a result of an 8.3 per cent global volume growth to an all-time annual record of 115,215 units, despite a worldwide three per cent decline in the over-500cc segment in which BMW operates. Sales in Europe climbed by 4.7 per cent to 68,961 units. The only negative European country was France, with a five per cent drop to 10,400 units. Even Italy was stable, with a marginal 0.3 per cent increase to 10,230 units. Star of BMW’s show was the USA, where sales rose by 16.5 per cent to 14,100 units. In every case, the brand bucked far weaker market trends. 

One-off losses relating to the Husqvarna subsidiary’s demise had seriously impacted on 2012 earnings data and the scale of that can been witnessed in much superior 2013 figures. Operating profit from bikes jumped by an extraordinary 777.8 per cent to £65.8m. Pre-tax profit was £63.3m, up from a mere £5m in the previous 12 months.

Return on capital employed in the motorcycle sector improved from 1.8 per cent in 2012 to 16.4 per cent in 2013, again reflecting the Husqvarna débacle.

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