Bayerische Motoren Werke AG (NASDAQ:BAMXF) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 am ET


Bayerische Motoren Werke AG (NASDAQ:BAMXF) Q3 2019 Earnings Conference Call - Final Transcript


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Oliver Zipse

the Americas, and it is also increasingly true at a local level, where needs differ from one city to the next. No less diverse are the legal and technical regulations we face worldwide. And as a global company, the BMW Group has already established its own production and value creation processes in the major regions worldwide.

We will now be focusing even more on this growing differentiation in China, the U.S. and Europe. We are purposely seeking dialogue with local experts to discuss relevant regional requirements and needs, We will be increasing our efforts here substantially. The insights we will gain will be integrated directly into our strategic approach, and this will enable us to offer tailored products, drive trains, equipment options and services in these regions in the future. At the same time we are gaining a better understanding of our customers and improving our customer-centric approach.

One example of this is China, where our customers are significantly younger vehicle connectivity is an important purchasing consideration for them. Continued strong growth and overall prosperity is also affecting the market for premium vehicles. I have already met with Premier Li Keqiang twice since taking over as CEO. And I had the impression that BMW Group is highly relevant in China, people listen to our opinion and regard us as a sought after partner. And soon, I will also travel to the United States of America.

Individual mobility will remain a stable long-term business prospect in all regions of the world. The Premium segment is forecast to grow at a higher rate than the total market. Based on this, we aim to make the most of the opportunities in the growing global car market, and our goal is to outperform the premium segment.

In the third quarter of 2019, the BMW Group reported growth in its core markets in all major regions. In Asia and China, despite the model despite the model changeover for the BMW 3 Series Long-Wheelbase. In the Americas and the United States despite a stagnant market; and in Europe, despite uncertainty over Brexit and in our domestic market, Germany. As a result, our third quarter deliveries rose year-on-year to over 610,000 vehicles, an increase of 3.6%. In other words, we are bucking the trend.

We also achieved a new all-time high in sales in both the third quarter and the first nine months, for BMW and Rolls Royce. The brand Mini also posted growth. Moreover, BMW Motorrad is also heading for its ninth consecutive record year. In the third quarter, reported growth of almost 10%. At the EICMA yesterday, we presented three new production models for 2020.

Our financial figures for the third quarter were as follows; Group earnings before tax over EUR2.2 billion, an increase of 23.4% over the same period of last year. Net profit over EUR1.5 billion, up 11.5%; and the EBIT margin in the Automotive segment was 6.6%. Despite challenging conditions, we aim to achieve our target range of 8% to 10% in