BMW's Irish arm paid €7m dividend

BMW's Irish subsidiary paid a dividend of €7 million to its Munich-based parent in 2006, according to accounts just filed.

This is the first dividend paid by BMW's Irish arm since the German luxury carmaker took control of the importation and distribution of its vehicles here from Frank Keane Holdings in 2003.

The dividend payment was made in spite of a 4.2 per cent decline in its pre-tax profit.

BMW Automotive (Ireland) posted a pre-tax profit of €8.6 million in the 12 months to the end of last December, compared with €9 million in 2005.

The profit decline was the result of a reduction in the level of interest income earned. This fell from €1.8 million in 2005 to €1.4 million last year.

Turnover, by contrast, powered ahead by 7.3 per cent to €209.5 million in 2006.

BMW sold 6,016 passenger cars in Ireland in 2006, giving it a 3.4 per cent market share. This compared with sales of 5,623 vehicles in 2005.

On the expenses side, BMW's cost of sales increased to €188.5 million from €175.2 million a year earlier. Its administrative expenses rose by 5.5 per cent to €11.7 million while its distribution costs increased by 16 per cent to €1.8 million.

BMW's Irish operation increased slightly its accumulated profits to €25.3 million in spite of the dividend payment.

The level of business was "satisfactory" in 2006 and is expected to be maintained "for the foreseeable future". Payroll costs for its 22 staff rose by 16 per cent to €2.8 million.

Directors' emoluments declined during the year to €242,000 from €321,000. "Key" management were paid €577,000 last year, down from €659,000 in 2005.