BMW earnings slashed in 2008

BMW crashed into losses in the second half of 2008 as sales gains posted in the first half of the year turned into a full-year drop of 4.3 per cent.

Hardest hit were BMW-branded cars, deliveries of which dropped sharply in the December half after being ahead at the June 30 halfway mark.

The sudden drop in sales in the second half saw the group plummet to a loss of €664 million ($A1.3 billion) in the December half year.

This wiped out most of the interim profit of €994 million ($A1.95 billion) at June 30 and left BMW with a modest full-year profit of €330 million ($A648 million) – down 89.5 per cent from €3.13 billion in 2007.

Car sales for the year were down 4.3 per cent to 1.44 million units. Sales of BMW-branded cars were down 5.8 per cent to 1.2 million.

By contrast, sales of Minis were up 4.3 per cent to 232,425 units, while Rolls-Royce deliveries jumped 20 per cent to 1212 units. Motorcycle sales were steady at 101,685 units.

Dividend payments to shareholders have been cut sharply, but not by as much as the profit. Shareholders of ordinary shares will receive €0.3 a share (59 cents), down from €1.06 ($A2.08) a share for 2007.