|Following the recent 2014 Polo Sedan announcement, Volkswagen Group Malaysia (VWGM) has released an update on the Group’s financial data for the first nine months of the year. Although the year has been a slow down for most automotive marques, Volkswagen Group’s overall uptrend has proven quite the opposite.|
VW Group have upped deliveries by 4.8 percent to 7.2 million vehicles worldwide, spurred by the Chinese market and the ever popular Golf 7. For unit sales, the figures spiked 3.8 percent year-on-year in the first nine months.
Overall spike in financial status for Volkswagen
The Group’s share of the passenger car market rose year-on-year to 12.7 percent. Sales revenue grew to 145.7 billion Euros (144.2 billion Euros) in the first nine months despite negative effects due to the market situation in Europe and exchange rates. Operating profit amounted to 8.6 billion (8.9 billion). Earnings were impacted by contingency reserves in the Passenger Cars and Power Engineering business areas. Consolidated operating profit does not include the 3.5 billion (2.8 billion) share of the operating profit of the Chinese joint ventures. These companies are included using the equity method and are therefore reflected in the financial result. Profit before tax in the first nine months was 9.4 billion (23.0 billion), whereby measurement effects in connection with the integration of Porsche (12.3 billion) had significantly lifted the prior-year figure. Profit after tax was 6.7 billion (20.2 billion).
At 16.6 billion Euros, net liquidity in the Automotive Division at the end of September was 6.1 billion higher than at year-end 2012. This was due in part to the robust business model, which is capable of generating solid cash flow even in a challenging environment. In addition, the capital base was strengthened by the successful placement of a mandatory convertible note and hybrid note. Investments in property, plant and equipment in the Automotive Division rose to 6.4 billion (6.0 billion). The Volkswagen Group again maintained its investment discipline with a ratio of investments in property, plant and equipment (capex) to sales revenue in the Automotive Division of 5.0 percent (4.6 percent). Investments related primarily to production facilities and the models to be launched in 2013 and 2014, as well as the ecological focus of the model range. The Group’s financial arm (Financial services) generated an operating profit of 1.1 billion.
Volkswagen passenger cars and related marques’ figures
The Volkswagen Passenger Cars brand sold 3.5 million cars in the first three quarters, down 3.8 percent on the prior-year period (3.6 million). The brand’s operating profit of €2.1 billion (€2.9 billion) was weighed down by lower sales volumes and upfront expenditures for new technologies.
Audi brand unit sales were on a level with the previous year at 1.0 million vehicles (1.0 million); the Chinese joint venture FAW-Volkswagen sold a further 309,000 Audi vehicles (247,000). Audi reported an operating profit of 3.7 billion Euros (4.2 billion) on the back of negative mix effects, higher upfront investments in new products and technologies, as well as the expansion of its global production facilities.
ŠKODA’s sales declined by 4.9 percent to 524,000 vehicles (551,000). Its operating profit amounted to 371 million Euros (€567 million), dampened by lower sales volumes, deteriorations in the mix, currency effects and the launch of new products. SEAT sold 335,000 vehicles (315,000) worldwide, 6.4 percent more than in the previous year. The operating loss was on a level with the previous year at 93 million Euros (95 million).
Bentley delivered 6,600 vehicles (6,700). At 98 million Euros, its operating profit was up on the prior-year figure of 73 million. Porsche, on the other hand, managed 115,000 vehicles and generated an operating profit of 1.9 billion Euros in the first nine months of 2013. The Group’s commercial vehicles division and truck brands Scania and MAN also reported partial uptrend numbers.