BMW Group Reports 2005 Results - Record Year 2006 Expected
At its annual accounts press conference in Munich, the car maker announced an EBIT increase of 0.5% to €3.79 billion, compared to €3.77 billion in 2004. Because of its high profitability and the positive outlook for 2006, the company will increase the dividend for shareholders
Stefan Krause Statement:
"We had to deal with immense external burdens due to unfavourable developments on the currency and raw material markets. Our target was not just to accept these burdens on profit, but to offset them as far as possible.
I will talk about this in greater detail later.
Last year’s earnings are impressive evidence of the Company’s efficiency and the strong motivation of our employees in all areas of the business.
Profit before tax amounts to almost euro 3.3 billion. Although 8.3% down on previous year, this is better than we had expected in the fall when the decrease looked as if it could be as much as 10%.
When we consider operating activities, this means without the effect of the fair value assessment of the Rolls-Royce exchangeable bond option, which I will discuss in more detail later, the picture is even more positive. We had to absorb additional fair value assessment costs of euro 356 million which were not foreseeable.
With net profit of euro 2.2 billion, we again achieved the previous year’s high level. This means earnings per share of euro 3.33 for common stock and euro 3.35 for preferred stock.
The free cash flow in the industrial business rose from euro 2.0 billion in the previous year to more than euro 3.7 billion in 2005. This figure shows you the BMW Group’s strong financial performance."