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Munich (ots Ad hoc-Service) - Reorganisation of the Board
The Supervisory Board has decided on a reorganisation of the Board
of Management: Dr. Burkhard Göschel (54) and Dr. Norbert Reithofer
(43) have been appointed to the Board of Management with immediate
effect. Burkhard Göschel will assume responsibility for Research and
Development; Norbert Reithofer will take over production.
Dr. Henrich Heitmann (58), so far responsible for sales and
marketing, Dr. Wolfgang Ziebart (50), so far responsible for research
and development, and Carl-Peter Forster (45), so far responsible for
production, have resigned with immediate effect. The Supervisory
Board thanked these gentlemen for their commitment to the company.
Pending the appointment of a new board member for sales and
marketing, the sales functions will be taken care of by Professor
Joachim Milberg (marketing) and Dr. Helmut Panke (sales) - while
maintaining their regular executive functions.
Professor Milberg stated: "With the new team, we will put the
reorientation of the BMW Group appropriately into practice".
Extraordinary expenditures on Rover leads to a deficit for the
year despite the highest annual surplus ever In the same Ordinary
Meeting the Supervisory Board examined and approved the 1999 Annual
Accounts and Balance Sheet. Despite the deteriorating result in the
Rover Car segment in 1999, the result of the BMW Group's ordinary
business was up by 4.7 per cent to euro 1,111 million (previous year:
euro 1,061 million). Following deduction of profit-related and other
taxes amounting to euro 448 million, the BMW Group's annual net
surplus amounts to euro 663 million (previous year: euro 462 million)
prior to this year's extraordinary result, representing the largest
annual net surplus ever achieved by the Group, an increase by 43.5
per cent over the previous year.
The BMW Group has made far-reaching provisions for the
restructuring processes required and any further risks foreseeable
with Rover. Amounting to euro 3,150 million, this extraordinary
expenditure leads to a deficit for the year of euro 2,487 million.
BMW Automobiles segment improved once again The result of ordinary
business in the BMW Automobiles segment has improved over the already
excellent figure achieved last year by another 5.1 per cent to euro
2,106 million (previous year: euro 2,003 million). By contrast,
losses in the segment of Rover Automobiles were up by euro 250
million to euro 1,207 million (+ 26.1%) on account of conditions in
the market, the influence of the exchange rate, and restructuring
In the BMW Motorcycle segment business results have continued to
improve, increasing by 12.5 per cent to euro 18 million (previous
year: euro 16 million).
This year the BMW Group is reporting for the last time on business
activities in the Aero Engine segment. With the process of converting
from a development to a production company being completed in 1999,
the loss sustained by BMW Rolls-Royce has dropped considerably by
37.6 per cent to euro 146 million (previous year: euro -234 million).
Since the beginning of this year the company has been a subsidiary of
Rolls-Royce plc and has been re-established under the name
Rolls-Royce Deutschland GmbH. Financial Services are continuing to
develop positively, the result generated by this segment of the BMW
Group increasing by 6 per cent to euro 316 million (previous year:
euro 298 million).
Dividend remaining stable The annual net surplus of BMW AG amounts
to euro 269 million (previous year: euro 234 million) and was
generated through the Company's operative business. The Board of
Management and the Supervisory Board advise the Annual General
Meeting to pay a dividend of euro 0.40 per ordinary share and euro
0.42 per preferred share for a nominal amount in each case of euro
1.00 on the equity entitled to dividends of euro 622.2 million
ordinary stock and euro 47.2 million preferred stock, thus using the
balance sheet profit of BMW AG of euro 269 million (previous year:
euro 234 million) to maintain a 40 per cent dividend on ordinary
stock and 42 per cent on preferred stock also after the changeover to
a nominal stock value of euro 1.00.
The business result of the Company - before extraordinary
expenditures - according to the German DVFA valuation method is euro
677 million (previous year: euro 518 million).
BMW Group turnover up once again in 1999 Turnover of the BMW Group
in the 1999 year of business was euro 34,402 million (previous year:
euro 32,280 million), equal to an increase by 6.6 per cent over the
previous year. This is primarily due to the increase in BMW vehicles
sales as well as the ongoing trend towards a higher level of
equipment in the cars sold.
Investments once again financed by cash flow BMW Group investments
last year amounted to euro 2,155 million (previous year: euro 2,179
million), thus remaining at virtually the same level already recorded
one year before. These funds were invested in the preparation of new
models, the modernisation and expansion of production, and the
reinforcement of the international sales and distribution network.
The BMW Group continues to be in a leading position in the automotive
industry in terms of its investment volume.
As in previous years, these investments were financed in full out
of the Group's cash flow (euro 2,807 million).
Jürg Dinner, Corporate and Economic Affairs, Business
Communication Telephone: (+49 89) 382-24118, Fax: (+49 89) 382-24418
Axel Obermüller, Corporate and Economic Affairs Telephone: (+49
89) 382-22332, Fax: (+49 89) 382-29756
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