Volkswagen Group reports plain gain in duration to September

Posted on 27. Oct, 2016 by in Volkswagen Canada

The Volkswagen Group generated an handling distinction before special apparatus of €11.3 (10.2) billion in a initial 9 months of a year, representing an boost of 10.5%. The sales income of €159.9 billion was on a turn with a prior year and a handling lapse on sales before special apparatus amounted to 7.0 (6.4)%. However, gain in a third entertain were impacted by serve supplies famous in tie with a diesel emanate of €0.4 billion. For a duration Jan to September, handling distinction after special apparatus amounted to €8.6 (3.3) billion. Profit after taxation was €5.9 (4.0) billion.

“The sum for a initial 3 buliding uncover a operational strength of a fondness of brands in a Volkswagen Group”, pronounced Matthias Müller, Chairman of a Board of Management of Volkswagen Aktiengesellschaft, commenting on a quarterly report. “This is a strong bottom on that we intend to pull brazen with a designed mutation from automobile manufacturer to provider of tolerable mobility. In ‘TOGETHER – Strategy 2025’, we have laid out a constrained devise for this transition. As a destiny module and a latest quarterly formula prove, a Volkswagen Group stays entirely operational in annoy of a benefaction pressures.”

Chief Financial Officer Frank Witter also emphasized how a Group’s plain financial position is a undeniably critical cause in a fortitude success: “Despite vital hurdles and a disastrous impact of a diesel issue, a Volkswagen Group stays on a plain financial footing.” As Witter explained: “Our net liquidity gives us a financial fortitude to actively figure a destiny of mobility while coping concurrently with a financial repercussions of a diesel emanate and a investments and cost compulsory for CO2 correspondence and new technologies.” The impact of a diesel issue, in particular, compulsory a systematic, trained proceed to investments and costs, he continued, “But serve poignant improvements in capability and profitability are indispensable opposite a whole Group. The Volkswagen brand’s ‘pact for a future’ is of essential significance for a destiny of a whole Group.”

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 method. The share of handling distinction attributable to a Chinese corner ventures to a finish of Sep 2016 remained fast during €3.6 (3.8) billion.

Net liquidity in a Automotive Division rises to €31.1 billion

Net liquidity in a Group’s Automotive Division increasing to €31.1 billion during a finish of Sep (compared to €24.5 billion during a finish of Dec 2015). The Automotive Division’s investments in property, plant and equipment, investment skill and unsubstantial assets, incompatible capitalized growth costs (capex) rose from €7.3 billion to €7.8 billion in a initial 3 quarters. The ratio of capex to sales income in a Automotive Division amounted to 5.7 %.

Brands and Business Fields

The Volkswagen Passenger Cars brand’s section sales of 3.2 (3.3) million vehicles in a initial 9 months of 2016 fell brief of a prior-year level. Operating distinction before special apparatus decreased to €1.2 (2.2) billion. The diminution is essentially attributable to volume, brew and sell rate effects as good as aloft selling costs as a outcome of a emissions issue. By contrast, cost assets had a certain effect.

Audi increasing a section sales by 0.7% year-on-year in a stating duration to 1.2 million vehicles worldwide. Our Chinese corner try FAW-Volkswagen sole a serve 411,000 Audi vehicles. At €3.9 (4.0) billion, handling distinction before special apparatus reached a 2015 level. In further to sell rate effects and heated competition, a enlargement of a indication and record portfolio and a general prolongation network had a disastrous impact on earnings.

The ŠKODA code sole 606,000 vehicles in a initial 3 buliding of this year, once again some-more than a year earlier. Operating distinction softened by 28.1% to €940 million especially on a behind of certain volume and brew effects as good as optimized product costs.

Despite a modifications during a Martorell plant, a SEAT brand’s section sales of 400,000 vehicles in a stating duration were during a prior-year level. At €137 million, handling distinction was €125 million aloft than in 2015, with cost reductions and brew improvements some-more than compensating for disastrous sell rate effects.

The Bentley code increasing a section sales by 6.1% year-on-year between Jan and Sep 2016, essentially due to a recognition of a new Bentayga. Due to certain effects from sell rates and cost-cutting measures, handling distinction was on a turn with a prior year during €54 (57) million in annoy of altered marketplace conditions.

The Porsche code carried a car sales by 5.0% year-on-year in a initial 3 buliding of 2016 to 177,000 units worldwide. Operating distinction climbed 12.2% to €2.9 billion. Here too, a arise was especially attributable to volume, brew and sell rate effects. Volkswagen Commercial Vehicles sole 342,000 vehicles worldwide in a initial 9 months of 2016. At €8.0 billion, sales income was adult 6.7% over a prior-year period. Operating distinction rose by €79 million to €392 million, as a outcome of aloft volumes and brew effects as good as optimized product costs.

Unit sales by a Scania brand amounted to 60,000 trucks and buses in a initial 3 buliding of 2016. Higher sales sum in Europe equivalent a decrease in direct in Turkey, South America and Russia. At Scania, handling distinction before special apparatus amounted to €802 (748) million.

As in a prior year, MAN Commercial Vehicles sole 74,000 units in a duration from Jan to Sep of this year. Operating distinction before special apparatus rose to €204 (52) million. Volume effects and softened margins in Europe as good as a constructional improvements introduced had a certain effect.

MAN Power Engineering’s sales income decreased by 6.9% year-on-year to €2.6 billion in a initial 9 months of 2016. This reduced a handling distinction by €51 million to €176 million.

At €1.5 billion, a handling distinction during Volkswagen Financial Services in a stating duration was 11.1% aloft than in a prior year. The series of financing, leasing, use and word contracts sealed in a stating duration rose by 14.6% to 4.9 million. The sum series of contracts was 15.8 million as of Sep 30, 2016, leading a 2015 year-end figure by 7.8%.

Outlook

We design that, on a whole, deliveries to business of a Volkswagen Group in 2016 will be somewhat aloft than in a prior year amid steadfastly severe marketplace conditions, with a flourishing volume in China. Depending on a mercantile conditions, sell rate developments and a diesel issue, a Group expects a sales income in 2016 to compare a prior-year level. In terms of a Group’s handling distinction before special items, it is expected that a full-year handling lapse on sales will be during a top finish of a foresee operation of 5.0 – 6.0%.

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