euro adhoc: Bayerische Motoren Werke Aktiengesellschaft
Financial
Figures/Balance Sheet
BMW AG increases risk provision - outlook for financial
year 2008 confirmed
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24.04.2008
Ad-hoc information pursuant to § 15 WpHG (Securities Trading Act)
BMW AG increases risk provision - outlook for financial year 2008 confirmed
The Board of Management of BMW AG decided at the board meeting held today to increase the amount of risk provision recognised in the first quarter of the financial year 2008 in the light of the repercussions of the international financial crisis. The financial crisis has become more severe of late. This has resulted in a drop in pre-owned car selling prices, particularly in North America, and consequently in a reduction of revenues that can be generated on vehicles at the end of lease contracts. This downward trend accelerated during the month of March. For the above reasons, it was necessary to recognise a higher risk provision for lease vehicles on the one hand and for the increased level of bad debts/payment arrears on the other. In total, an expense of euro 236 million was recognised.
Given its strong operating performance and the benefits of on-going efficiency improvements, the BMW Group confirms its outlook for the financial year 2008: Excluding the exceptional gain on the Rolls-Royce exchangeable bond recognised in 2007, the BMW Group aims to achieve higher pre-tax group earnings in 2008 than one year earlier. Further details regarding business development in the first quarter will be published on 29 April 2008.
Further inquiry note:
Marc Hassinger Tel.: +49 (0) 89 382 23362 E-Mail: Marc.Hassinger@bmw.de
Bill McAndrews Tel.: +49 (0) 89 382 22332 E-Mail: Bill.McAndrews@bmw.de
end of announcement euro adhoc --------------------------------------------------------------------------------
Further inquiry note:
Susanne Meis
Tel.: +49(0)89 382 33005
E-Mail: susanne.meis@bmw.de
Branche: Automotive Equipment
ISIN: DE0005190003
WKN: 519000
Index: DAX, CDAX, HDAX, Prime All Share
Börsen: SWX Swiss Exchange / Hauptsegment
Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / regulated dealing
Börse Hamburg / regulated dealing
Börse Stuttgart / regulated dealing
Börse Düsseldorf / regulated dealing
Börse Hannover / regulated dealing
Börse München / regulated dealing
Original content of: BMW AG, transmitted by news aktuell