German premium carmaker Bayerische Motoren Werke AG or BMW Group (BAMXY, BAMXF, BMW.L) on Tuesday reiterated its financial targets for fiscal 2013. The company also said that it will further invest in new technologies and models as well as in its production network for continued success in the future. Further, the company noted that the all-electric BMW i3 will come onto the market by the end of this year.
At the 93rd annual general meeting of the company in Munich, BMW said it is aiming for a new sales volume at Group level and a group profit before tax for 2013 to be similar to 2012.
In the year 2012, BMW Group's net profit grew 4.4 percent to 5.12 billion euros and profit before financial result or EBIT increased 3.5 percent to 8.30 billion euros, despite higher expenditure on new technologies and increased personnel costs. Revenues for the year rose 11.7 percent from the prior year to 76.85 billion euros. BMW delivered 1.85 million units of BMW, MINI and Rolls-Royce brand vehicles in 2012 to customers worldwide, up 10.6 percent from 2011.
For fiscal 2013, BMW reaffirmed its forecast for EBIT margin for the Automotive segment between 8 percent and 10 percent despite additional costs. The company sees the range as a sustainable EBIT margin beyond 2013.
The company continues to project the Motorcycles segment to record further sales volume growth in the current year, thanks to new models such as the R 1200 GS, that is anticipated to bring about a further rise in segment revenues and earnings. The financial segment is forecast to achieve a return on equity of at least 18 percent.
BMW will continue to invest in existing and new locations, including the new site planned in Brazil that will produce up to 30,000 vehicles per year. The carmaker expects production at the new site to start in 2014, with investments in Brazil of more than 200 million euros over the coming years.
BMW noted that development costs for new technologies and vehicle concepts will also continue to rise in 2013, with eleven new models scheduled for launch in 2013 alone. By the end of 2014, the company expects some 25 new models will be added to the range, ten of them totally new models.
Norbert Reithofer, chairman of the board of management of BMW, said, "We aim to maintain a good balance of sales between the three major regions of the world: Europe, the Americas and Asia. Last year, the U.S. accounted for 18.9% of total sales, China 17.7% and Germany 15.6%"
Further, BMW said it will focus on e-mobility in 2013. The company noted that the all-electric BMW i3, designed for zero-emission driving in the urban environment, will come onto the market by the end of this year.
The BMW i3 features a passenger compartment made of carbon-fibre-reinforced plastic or CFRP and an aluminum chassis. As a result, the BMW i3 will be 250 to 350 kilograms lighter than a conventional electric car.
At the annual general meeting, BMW's board of management and the supervisory board will propose to shareholders that the dividend be increased to a new high level of 2.50 euros per share of common stock from 2.30 euros per share in 2011.
The company's board will also propose to increase the dividend for preferred stock to 2.52 euros per share from 2.32 euros per share in 2011. Based on these figures, the total distribution will rise to 1.64 billion euros from 1.51 billion euros in the prior year.
In Frankfurt, BMW shares are currently trading at 73.15 euros, up 1.07 euros or 1.48 percent on a volume of 1.53 million shares.
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