Volkswagen Group reports plain H1 2014 business expansion notwithstanding formidable marketplace environment

The Volkswagen Group reported plain business enlargement in a initial 6 months of 2014 notwithstanding a ongoing formidable marketplace environment. At EUR 98.8 billion (EUR 98.7 billion), sales income in a initial 6 months was usually somewhat adult on a prior-year duration due to poignant disastrous sell rate effects. Operating distinction grew by 7.0 percent to EUR 6.2 billion (EUR 5.8 billion) and a handling lapse on sales rose to 6.3 percent (5.9 percent). The Group’s handling distinction and sales income bar a activities of a Chinese corner ventures, that are accounted for in a financial outcome regulating a equity process and are therefore not enclosed in combined handling profit. The share of handling distinction attributable to a Chinese corner ventures in a initial half of 2014 was EUR 2.6 billion (EUR 2.4 billion).

The Volkswagen Group’s distinction before taxation amounted to EUR 7.8 billion (EUR 6.6 billion). The lapse on sales before taxation rose to 7.9 percent (6.7 percent) in a initial 6 months, due among other factors to dimensions effects in a financial result. Profit after taxation was EUR 5.7 billion (EUR 4.8 billion). “Despite headwinds, a financial opening in a initial 6 months was good. In light of a continued clever rival pressures, a moving conditions in some rising economies and a elemental technical and mercantile changes function in a industry, we are operative tough to emanate all a conditions we need currently to safeguard success tomorrow. we am assured that we will not wince from a trail we have chosen”, pronounced Prof. Dr. Martin Winterkorn, Chairman of a Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg on Thursday.

Global direct for newcomer cars continued to arise in a initial 6 months of 2014. However, a gait of enlargement eased off and trends were churned during a informal level. The series of new registrations in a Asia-Pacific region, Western Europe, North America and Central Europe increasing year-on-year, while a markets in South America and Eastern Europe available marketplace volumes that were significantly reduce year-on-year in some cases. “The macroeconomic conditions has frequency been so flighty and fragmented – from sell rates down to a declines in a rising economies. That’s because it’s some-more critical than ever before for us to hang to a trained cost and investment government and to say a plain financial position so that we can grasp a profitability targets and vital goals for 2018”, pronounced Chief Financial Officer Hans Dieter Pötsch.

Net liquidity in a Automotive Division stays high

Net liquidity in a Automotive Division amounted to EUR 14.0 billion during a finish of Jun (December 31, 2013: EUR 16.9 billion). The merger of a Scania shares and a collateral boost during a Financial Services Division reduced liquidity, while a collateral boost from arising new elite shares and a successful chain of hybrid records strengthened a Automotive Division’s collateral base. Investments in property, plant and apparatus (capex) in a Automotive Division declined somewhat to EUR 3.6 billion (EUR 3.9 billion). The Volkswagen Group confirmed a trained proceed to investment with a ratio of capex to sales income in a Automotive Division of 4.1 percent (4.5 percent). Investments were done essentially in prolongation comforts and in a models to be launched in 2014 and 2015, as good as in a ecological concentration of a indication range.

Brands and business fields

The Volkswagen Passenger Cars code available an handling distinction of EUR 1.0 billion (EUR 1.5 billion) in a initial 6 months of 2014. Operating distinction was negatively impacted by reduce volumes, disastrous sell rate trends and aloft upfront investments in new technologies. It should be remarkable that this figure does not embody a Chinese corner ventures. The handling domain reached 2.1 percent (3.0 percent) in a initial 6 months. The Volkswagen code has launched an potency module in sequence to strech a aim handling lapse on sales of during slightest 6 percent by no after than 2018.

Audi’s handling distinction was roughly on a turn with a prior year, during EUR 2.7 billion (EUR 2.6 billion). Earnings enlargement was impacted by disastrous sell rate effects, high upfront investments in new products and technologies, as good as in a enlargement of a general prolongation network. The handling domain was 10.0 percent (10.5 percent).

ŠKODA generated an handling distinction of EUR 425 million (EUR 243 million) in a initial half of 2014, a substantial boost compared with a prior year on a behind of volume and mix-related factors. The handling domain in a initial 6 months was 7.1 percent

(4.9 percent).

Positive volume, brew and product cost effects helped SEAT urge a handling outcome to EUR – 37 million (EUR – 40 million).

Bentley’s handling distinction climbed year-on-year to EUR 95 million (EUR 58 million), and a handling domain was 10.7 percent (8.3 percent).

Porsche available an handling distinction of EUR 1.4 billion (EUR 1.3 billion) and an handling domain of 17.1 percent (18.4 percent) in a initial 6 months.

Operating distinction during Volkswagen Commercial Vehicles rose by 13.5 percent year-on-year to EUR 280 million (EUR 246 million). The handling domain was 5.9 percent (5.2 percent).

Scania posted an handling distinction of EUR 476 million (EUR 464 million) and an handling domain of 9.4 percent (9.1 percent). MAN generated an handling distinction of EUR 222 million (previous year: handling detriment of EUR 124 million) and an handling lapse on sales of 3.3 percent.

Volkswagen Financial Services generated an handling distinction of EUR 776 million (EUR 696 million) in a initial 6 months of 2014, a year-on-year boost of 11.5 percent. Worldwide 2.3 million new financing, leasing and service/insurance contracts were sealed (+ 16.1 percent).

Winterkorn: “We wish to be a personality in moulding a destiny of a automobile.”

The Volkswagen Group will press forward with a product beginning opposite all brands in 2014, modernizing and expanding a charity by introducing appealing new vehicles. Volkswagen is awaiting a assuage boost in deliveries to business in mercantile year 2014. Challenges for a Group will come from a formidable marketplace sourroundings and extreme competition, as good as seductiveness rate and sell rate sensitivity and fluctuations in tender materials prices. Volkswagen believes that a modular toolkit system, that is being invariably expanded, will have an increasingly certain outcome on a Group’s cost structure.

The opinion for a stream year was reiterated. Depending on mercantile conditions, Volkswagen is awaiting 2014 sales income for a Group and a business areas to pierce within a operation of 3 percent around a prior-year figure. In terms of a Group’s handling profit, Volkswagen is forecasting an handling lapse on sales of between 5.5 percent and 6.5 percent in 2014 in light of a severe mercantile environment, and a same operation for a Passenger Cars Business Area.

The Group expects a Commercial Vehicles/Power Engineering Business Area to tolerably surpass a 2013 figure. Volkswagen anticipates an handling lapse on sales of between 8.0 percent and 9.0 percent in a Financial Services Division.

“Our Group has available clever enlargement in new years. This offers us many opportunities opposite all of a brands to turn some-more fit and to precedence synergies – a obligatory priority is now to feat this potential”, pronounced Winterkorn, adding: “Our aspiration is to be a personality in moulding a destiny of a automobile. We are now formulating a conditions for doing that with a ‘Future Tracks’, a Group far-reaching destiny and potency orientated program.”

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