Volkswagen Reports Robust Operations in Fiscal Year 2015 – Special Items Impact on Result for a Year

Posted on 22. Apr, 2016 by in Volkswagen Canada

The Volkswagen Group’s operations grown really dynamically in mercantile year 2015 in annoy of a emissions issue. Consolidated sales income rose by 5.4 percent to EUR 213.3 billion on a behind of improvements in a brew in a automotive business and a clever opening of a Financial Services Division, alongside certain sell rate effects. The plain expansion of sales income is not reflected in a applicable gain figures: a handling result, that had amounted to EUR 12.7 billion in 2014, stood during EUR –4.1 billion in 2015. This figure includes disastrous special equipment totaling EUR 16.9 billion. At EUR 12.8 billion, a handling distinction before unusual charges was somewhat aloft than a prior-year figure.

The largest share of a special equipment amounting to €16.2 billion comprises supplies for a emissions issue, among other things for tentative technical modifications and customer-related measures as good as tellurian authorised risks. This takes comment of a identifiable risks in a 2015 annual financial statements in tie with a emissions issue.

The share of handling distinction attributable to a Chinese corner ventures, whose business is not enclosed in a Group’s sales income and handling result, marginally exceeded a glorious prior-year figure following a clever fourth entertain and on comment of sell rate effects. Due to a high unusual charges, a Volkswagen Group available a combined detriment before and after taxation of EUR 1.3 billion and EUR 1.4 billion, respectively.

“The Volkswagen Group’s operations are in good shape, as a sum before special equipment for a past mercantile year clearly show,” explained a Chairman of a Board of Management, Matthias Müller. “Were it not for a large supplies we done for all repercussions of a emissions emanate that are now quantifiable, we would be stating on nonetheless another successful year overall. The stream predicament – as a sum presented currently also exhibit – is carrying a outrageous impact on Volkswagen’s financial position. Yet we have a organisation idea and a means to hoop a formidable conditions we are in regulating a possess resources,” Müller added.

The Volkswagen Group’s financial conditions is favorable. The sale of a shares in Suzuki, among other things, combined a sum of EUR 2.8 billion to a Automotive Division’s net money flow, lifting it to EUR 8.9 billion. Net liquidity in a Automotive Division rose to EUR 24.5 (17.6) billion.

After deliberation all a circumstances, a Board of Management and Supervisory Board will introduce to a Annual General Meeting of Volkswagen Aktiengesellschaft on Jun 22, 2016 that a division be paid. This is due to be €0.11 per typical share and €0.17 per elite share.

The Board of Management estimates that, on a whole, deliveries to business of a Volkswagen Group in mercantile year 2016 will be on a turn with a past year due to volume expansion in China. Depending on a mercantile conditions – quite in South America and Russia – and a sell rate expansion and in light of a emissions issue, a Board of Management expects that sales income for a Volkswagen Group might be down by as most as 5 percent on a prior year. In terms of a Group’s handling profit, a Board of Management anticipates an handling lapse on sales of between 5.0 and 6.0 percent.

“This year we are again handling in an awfully severe sourroundings in that tellurian direct for new vehicles is declining, sell rates and seductiveness rates sojourn rarely flighty and foe in many of a markets is intensifying. Added to this is a emissions issue, a endless construction of that will also be a widespread underline of a Volkswagen Group’s work in a stream year,” Chief Financial Officer Frank Witter explained. “Regardless of this, we are assured that a Volkswagen Group will make good swell on a selected path.”

Volkswagen presents 2015 combined financial statements:

*) Excluding merger and ordering of equity investments: EUR 17,270 million (previous year: EUR 15,719 million).

Prospects for 2016:

The Volkswagen Group’s brands will press forward with their product beginning in 2016, modernizing and expanding their charity by introducing new models. Our idea is to offer all business a mobility and innovations they need, sustainably strengthening a rival position in a process.

We design that, on a whole, deliveries to business of a Volkswagen Group in 2016 will be on a turn with a prior year amid steadfastly severe marketplace conditions, with a flourishing volume in China.

In further to a emissions issue, a rarely rival sourroundings as good as seductiveness rate and sell rate sensitivity and fluctuations in tender materials prices all poise challenges. We design a certain outcome from a potency programs implemented by all brands and from a modular toolkits. Depending on a mercantile conditions – quite in South America and Russia – and a sell rate expansion and in light of a emissions issue, we guess that 2016 sales income for a Volkswagen Group might be down by as most as 5 percent on a prior-year figure. In terms of a Group’s handling profit, we design an handling lapse on sales of between 5.0 and 6.0 percent in 2016.

In a Passenger Cars Business Area we design a pointy diminution in sales revenue, with an handling lapse on sales in a segment of 5.5 – 6.5 percent. With sales income in a Commercial Vehicles Business Area expected to sojourn radically unchanged, a handling lapse on sales should be between 2.0 and 4.0 percent. We design sales income in a Power Engineering Business Area to be merely reduce than a prior-year figure, with a significantly reduced handling profit. For a Financial Services Division, we are forecasting sales income and handling distinction during a prior-year level. Disciplined cost and investment government and a continual optimization of a processes are constituent elements of a Volkswagen Group’s strategy.

The Annual Media Conference and Investor Conference will be hold in Wolfsburg on Apr 28, 2016.

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