BMW Posts Record Figures For Fourth Successive Year

The BMW Group has continued to perform well during the past year and has maintained its position as the world's leading premium manufacturer recording their highest ever sales volume and group profit figures. Group revenues were slightly down on last year due to exchange rate developments. Pre-tax profits increased by 1.4% to 7,913m euros. Group net profit increased 4.5% to 5,340m euros another new record for BMW.

The Group plans to increase worldwide sales volume in 2014 and the increase should be reflected in group profit before tax which is also expected to rise significantly. The increase in earnings will be affected by investment in new technologies and personnel expenses. Good progress was made by the Financial Services division

BMW was also able to increase the size of its workforce in 2013 employing a record number of apprentices. The BMW Group trained a total of 4,445 apprentices worldwide. The workforce increased by 4.2% in all reflecting growth in business volumes and the rapid pace of innovation. Worldwide BMW employed 110,351 employees up from 105,876 employees in 2012. The increase was driven by the growing need for engineers and skilled workers to keep up with demand and to continue to develop innovations and new technologies.

Record Number Of Small Business In UK

The Office for National Statistics and the Department for Business, Innovation and Skills recently released statistics concerning small and medium sized enterprises for the UK and regions for 2009. It gives estimates of the numbers of SMEs in the UK the employment they provide and their turnover.

The release says that there were 4.8m enterprises in the private sector at the beginning of 2009, an increase of 1.1% or 51,000 on 2008 and the highest number since these records began in 1994. They employed 22.8m people and their combined turnover was an estimated £3,200bn. Although SMEs account for 99.9% of all enterprises, they accounted for 59.8% of private sector employment and only 49% of private sector turnover. The turnover increased in 2009 by an estimated 5.8% or £1,589bn on 2008.

Most, 99.3%, of the SMEs were small (0-49 employees) and only 27,000 were medium sized (50-249). There were only 6,000 large enterprises (over 250 employees) in the UK in 2008. The number of people employed by SMEs fell by 309,000 or -1.3% since 2008. The number of sole proprietorships increased for the seventh year in a row, by 65,000, to 3.1m. The total number of businesses without employees was 3.6m, up 68,000. They account for 74.8% of all private sector enterprises and a combined turnover of £240bn at the beginning of 2008. Partnerships decreased by 18,000 to 444,000.

UK Order Books Looking Better

The manufacturing sector looks to be improving but profits are threatened by rising costs according to the latest Industrial Trends survey from the CBI. The first three months to April show that orders are rising for British made goods overseas but as order books are still recovering from 30 year lows, total order books are still below normal.

The growth in orders is expected to continue over the next few months and production is expected to increase along with it. It is reflected in business confidence which continues to improve. Average unit costs are rising and though domestic prices were stable prices may increase in the next three months. Most firms say they working below capacity.

Firms have continued to de-stock but levels of finished goods have fallen in the quarter and are expected to stabilise in the next as is work in progress as the decline in raw materials slows down. Credit and finance are expected to continue to limit output over the next three months and even constrain exports. A majority of firms have plans to invest in training and retraining and in innovation.

Growth In Manufacturing Output

An increase in overseas demand for UK goods and continued stock reduction saw manufacturing production increse for the first time in two years according to the latest CBI Industrual Trends survey for the three months to January 2010. Weak demand and access to finance mean that the outlook is still uncertain.

The survey reports the strongest output since January 2007 and the first increase in export orders since January last year. De-stocking is slower however and demand is weaker than expected. Business confidence is continuing to get better and more more managers are optimistic than three months ago. Fewer businesses reported reductions in staff numbers.

Business are also reported to be planning to invest in training and retraining and innovation. Capital investment in buildings is expected to be reduced but plant and machinery investments will remain almost unchanged. Firms are working below capacity and domestic prices are expected to rise.

Manufacturing Returning To Growth

The CBI quarterly Industrial Trends survey results were released yesterday. They report that the decline in manufacturing output has slowed in the last three months and the prospects are brighter. Confidence is returning to the sector and growth is expected in the next quarter. The comparative weakness of the pound is also helping British companies to compete in export markets.

The volume of output from manufacturing fell again over the quarter according to a majority of companies responding to the survey though at a much slower rate of decline than in the last quarterly survey in July. A small majority of respondents also expect to see growth in the next quarter. Marginal growth is also expected in the domestic market even though demand has continued to slow. The contraction in demand for exports was less than expected and companies expect export orders to increase over the next three months. More businesses are optimistic about exports for the coming year than they have been since 1995. More and more businesses are also becoming more confident in the general business situation.

Destocking is continuing as stocks of finished goods fell at a record rate for a second time. Levels are more than adequate. Firms are planning to spend more on innovation over the next year. Expenditure on staff and training, plant and machinery is expected to remain unchanged.