BMW 2008 Annual Report Download - page 50

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51 Group Management Report
Revenues by segment
in euro million
2008 2007
Automobiles 48,782 53,818
Motorcycles 1,230 1,228
Financial Services 15,725 13,940
Other Entities 191 290
Eliminations –12,731 –13,258
Group 53,197 56,018
Profit before tax by segment
in euro million
2008 2007
Automobiles 318 3,232
Motorcycles 51 71
Financial Services – 292 743
Other Entities 295 168
Eliminations – 21 – 341
Group 351 3,873
The Group net profit was euro , million or .  below
the figure reported in the previous year. The significantly
lower effective tax rate was due primarily to higher tax reim-
bursements.
The Automobiles segment recorded a .  decrease in
sales volume and a .  decrease in revenues. Due to the
adverse factors described above, the segment profit fell by
. to euro  million.
Revenues of the Motorcycles segment edged up by . .
Difficult business conditions caused the segment profit to
drop by . to euro  million.
Revenues generated by the Financial Services segment rose
by . to euro , million as a result of business vol-
ume growth. Higher risk provision expense and refinancing
costs resulted in a segment loss of euro  million in .
The segment profit for the Other Entities segment was
euro
 million (: euro  million). The increase here
was mainly due to the higher level of income from reversals
of provisions and a gain on the partial sale of the Cirquent
Group.
Financial position
The Group and Segment cash flow statements show the
sources and applications of cash flows for the financial
years  and , classified into cash flows from operat-
ing, investing and financing activities.
Cash flows from operating activities are determined indi-
rectly starting with the Group net profit. By contrast, cash
flows from investing and financing activities are based on
actual payments and receipts. Cash and cash equivalents
in the cash flow statement correspond to the amount
disclosed in the balance sheet.
Operating activities of the BMW Group generated a
positive cash flow of euro , million in , a de-
crease of euro , million or .  compared to the pre-
vious year. Changes in net current assets during 
generated a cash inflow of euro  million (: euro
 million). The cash outflow for investing activities
amounted to euro , million and was therefore euro
, million higher than in . Capital expenditure for
intangible assets and property, plant and equipment
resulted in the cash outflow for investing activities de-
creasing by euro  million on a year-on-year comparison.