A mixed quarter for BMW Motorrad, as the Bavarian company has once again posted a positive sales quarter of 6.5% growth over Q3 2010, despite losing money overall in the current inclement financial weather. Selling 28,862 units in this year’s third quarter, BMW Motorrad’s sales, as usual, were primarily carried by the BMW brand, which sold 26,312 motorcycles.
Perhaps lending even further credibility to the business case for the Husqvarna Nuda 900, the Swedish motorcycle brand accounted for only 2,550 units in Q3 2011 (or just under 9% of total sales, for those keeping score). Independently, the BMW motorcycle brand was up 7.4% over last year’s same time period, while Husqvarna sales were down 1.9%. BMW & Husqvarna sold 24,493 & 2,601 units respectively during last year’s third quarter.
However on the balance sheet side of things, BMW Motorrad revenues were up 14.8%, earning the BMW Group €334 million. However, earnings before income taxes (EBIT) were down again, with a loss of €16 million. BMW Motorrad attributes these loses to the restructuring process currently underway with Husqvarna, which hopefully will start contributing to BMW’s bottom line as the company pushes into the road segment.
Of note, BMW has once again failed to make money by selling motorcycles in the third quarter, despite rising sales, which have been powered by several key segment successes. Leading key market segments with the R1200GS, S1000RR, and K1600GT/GTL, BMW has an arsenal of hit motorcycles at is disposal, but it seems even the darlings of the motorcycle industry are having a hard time in turning an actual profit in this market.
Following this third-quarter net loss, BMW Motorrad’s year-to-date (YTD) figures still show a net positive return, as YTD revenues were up 9.3% over 2010. Similar to Q3 2011 and despite revenue and sales increase, YTD EBIT is down 30%, earning BMW Motorrad a gain of only €62 million (YTD EBIT was € 88 million in 2010). YTD motorcycle sales for the BMW Group was up 4.7% to 92,972 units (86,892 for BMW, 6,080 for Husqvarna).
Source: BMW Group