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BMW Posts Earnings Gain for 2009

However, net profit declines -36% compared to 2008.

by on Mar.17, 2010

Reithofer has reason to smile after a good year, relatively, in a bad economy.

The BMW Group posted positive earnings for the financial year 2009 in the face of the ongoing Global Great Recession.

Profit before tax rose by 17.7% to €413 million compared with 2008 at €351 million.

Net profits declined, though, to €210 million from €330 million a year earlier or -36.4% due a higher effective tax rate.

This is a ten year low, and BMW stock prices have been hammered with preferred sharrs declining by two-thirds from recent highs just before the financial markets collapsed in 2008.

Revenues decreased moderately by 4.7% to €50,681 million from 2008′s €53,197 million. The dividend remains unchanged at €0.30 per share of common stock and €0.32 per share of preferred stock.

“We performed well in 2009 despite difficult market conditions worldwide. Our cost management and efficiency improvement measures had a positive impact, even though the effects of the worldwide financial and economic crisis were still being felt,” stated Norbert Reithofer, Chairman of the Board of Management of BMW in Munich.

“We are proposing a dividend for 2009 despite the difficult economic climate, demonstrating the confidence we have in our operating strength, and we also want our shareholders to participate in the company’s performance,” said Reithofer.

Automobile Segment Loses Money

Earnings of the automobiles segment dropped in 2009 due to lower unit sales brought about by the weak economies worldwide. The segment was able to generate a fourth-quarter profit before interest and taxes  (EBIT) of €93 million.

For the full year, though, the segment recorded negative EBIT of €265 million (2008: positive EBIT of €690 million) and a loss before tax of euro 588 million (2008: profit before tax of €318 million). Revenues fell to €43,737 million (2008: €48,782 million.

Numbers, Good and Bad!

In total, the BMW Group sold 1,286,310 BMW, Mini and Rolls-Royce brand vehicles in 2009; -10.4% from 2008’s 1,435,876 units.

BMW Group retains its position as the world’s leading premium manufacturer.

BMW plans to sell “more than 2 million cars and sport- utility vehicles by 2020 compared with at least 1.3 million this year,” Reithofer  said today.


Toyota Loses ¥77.8 billion in its First Quarter

The bigger the giant is, the harder it falls. Is the worst over?

by on Aug.04, 2009

Another year before the red ink stops flowing, according the the family scion.

Another year before the red ink stops flowing, according the the family scion.

Toyota Motor Corporation lost more than $815 million in the first quarter of its fiscal year, as revenues declined 38% when compared with its first quarter of last year.

The swing into negative numbers was breathtaking. Net income attributable to Toyota Motor Corporation decreased from ¥353.6 billion to a loss of ¥77.8 billion or $4.52 billion. Major factors for the decline include ¥650 billion due to the effects of declining sales volume and mix, and ¥140 billion due to the appreciation of the Japanese Yen, mainly against the U.S. dollar and the Euro.

Critics have maintained for years that the Japanese government manipulates the value of the Yen to subsidize its export driven economy, but the global Great Recession has upset that equation.

“Although we were able to make certain improvements in fixed cost and cost reduction efforts, the decline in vehicle sales and the appreciation of the Japanese yen had a severe impact on our earnings,” said TMC Senior Managing Director Takahiko Ijichi.

Consolidated vehicle sales for the first quarter amounted to 1.4 million units, a decrease of 785,000 vehicles from the same period last fiscal year. Roughly speaking that’s the equivalent of three final assembly plants working full time, to say nothing of the stamping and component plants that support them.

Nevertheless, the world’s largest automaker upped its full year forecast to net revenues of ¥16.8 trillion, but still with an operating loss of ¥750.0 billion, a loss before income taxes and equity in earnings of affiliated companies of ¥700.0 billion and net loss of ¥450 billion, or $4.7 billion. These projections are based on the assumption of the foreign exchange rates: ¥90:$1, ¥130:€1.


Nissan Posts ¥16.5 Billion Loss in First Quarter

Globally, Nissan sold a total of 723,000 vehicles in the April-to-June period, down 22.8%.

by on Jul.30, 2009

Nissan's Carlos Ghosn

"2009 continues to be a tough year, but we are beginning to see positive results from the measures taken under our Recovery Plan."

Nissan Motor Company  Ltd announced a net loss after tax of ¥16.5 billion ($170 million, euro €120 million) in the first quarter of fiscal year 2009, which ends March 31, 2010, compared to net income of ¥52.8 billion yen ($540 million) from the same period a year ago.

Net revenue fell 35.5% to ¥1.5 trillion ($15.55 billion). Nissan’s operating profit totaled ¥11.6 billion ($120 million), down 85.5%, while the ordinary loss amounted to ¥26.1 billion($270 million).

Globally, Nissan sold a total of 723,000 vehicles in the Q1 April-to-June period, down 22.8% compared to same period in 2008. In North America, sales were 225,000 units, down 31.6%. Sales in the United States were 173,000 units, down 31.5% in a market that continues to decline. In Japan, sales were 116,000 units, down by 21.6%. European sales were 118,000 units, down 24.6%. China grew with sales up by 9.3% at 145,000 units. Sales in other regions were down 29.8% to 119,000 units.

The first quarter saw the launch of three products  — Pixo in Europe, NV200 in Japan and G37 convertible in the United States. In fiscal 2009, Nissan says it will launch a total of eight all-new products globally.