The Volkswagen Group leveraged its prior-year momentum and maintained its growth rate in the first quarter of 2011.
Sales revenue climbed by 30.8 percent to EUR 37.5 billion (Q1 2010: €28.6 billion). At 1.99 million, vehicle deliveries by Europe’s largest automotive group were up 14 percent in the period between January and March, exceeding the prior-year quarter’s strong figures. The Group’s share of the global passenger car market rose to 12 percent in the reporting period (11.5 percent). Operating profit climbed to EUR 2.9 billion compared to EUR 0.8 billion for the same period 2010.
The operating return on sales rose from 3 percent to 7.8 percent year-on-year.
Volkswagen stated that the consolidated operating profit does not include the EUR 557 million share of the operating result accounted for by the Chinese joint ventures, this was EUR 303 million for the same period in 2010. Volkswagen said that the Chinese joint ventures are included using the equity method and are therefore reflected in the financial result.
Overall, VW group profit before tax amounted to EUR 2.2 billion (EUR 0.7 billion in 2010).The result after tax for the first quarter of the year increased to EUR 1.7 billion (EUR 0.5 billion in 2010).
CFO Hans Dieter Pötsch said: “The Volkswagen Group has got off to a good start”, our sound finances and continuous improvements in profitability are the basis for the Volkswagen Group’s successful future”.
The positive overall development on the global automotive markets, and in particular the sustained high demand in China, India, Central and Eastern Europe, and North and South America, was the main earnings driver. In addition to the higher volumes, lower product costs contributed to ongoing profitable growth.
The Volkswagen Group maintained its strict investment discipline with a ratio of investment in property, plant and equipment to sales revenue of 2.8 percent in the Automotive Division. This figure is expected to remain within the target corridor of up to around 6 percent of sales revenue for the full year.
All brands and business fields within the Group recorded improvements in the first quarter. Overall, unit sales by the Volkswagen Group in the period from January to March rose by 19.3 percent year-on-year, to 2 million vehicles.
Global sales by the Volkswagen Passenger Cars brand in January to March rose to 1.1 million vehicles (0.9 million). Demand for the Polo, Tiguan, Touareg, Jetta, Passat Variant, Passat CC and Sharan models increased. The Volkswagen Passenger Cars brand’s operating profit more than doubled in comparison to the first quarter of 2010, rising from EUR 416 million to EUR 1.1 billion.
Worldwide sales by the premium brand Audi increased by 18.1 percent in the first quarter to 374,000 vehicles compared to 316,000 vehicles in the same period last year. Operating profit grew from EUR 478 million to EUR 1.1 billion. The Audi Q5 and Audi Q7 models recorded the highest growth rates. Demand for the new Audi A1, Audi A7 Sportback and Audi A8 models was also encouraging.
Unit sales by the Skoda brand increased to 181,000 in the period from January to March, up from 142,000 vehicles in the same period in 2010. First-quarter operating profit rose to EUR 187 million. VW said that all models under the Skoda name contributed to this success.
SEAT sold 93,000 vehicles worldwide, an increase of 2000 vehicles. The loss generated by the brand amounted to EUR 12 million, after a loss of EUR 110 million in the prior-year period. Higher volumes, reduced sales support measures and optimised marketing costs contributed to this.
Bentley benefited from improved conditions in the luxury segment. The brand’s operating loss narrowed by EUR 11 million compared with the prior-year period, to EUR 25 million. Bentley was negatively impacted by upfront expenditures for new products and exchange rate effects.
The Group is confident about 2011 saying “Volkswagen is continuing to power ahead, thanks to our expertise in technology and design, we have a diverse, attractive and environmentally friendly range of products that meets customers’ desires and needs”.
Overall, global demand for passenger cars is expected to exceed the level for 2010. In some Western European countries, rising public debt and the end of subsidy programs will have a negative impact on demand for new vehicles. By contrast, an increase in new vehicle registrations can be expected in Central and Eastern Europe. The Volkswagen Group expects the positive trend in the strategically important markets of China and India to continue, and that demand will also rise further in the markets of North and South America.
EmoticonEmoticon