2.5.2019. The Volkswagen group confirmed its targets for deliveries to customers, sales revenue and Operating profit before special items for the full year.
In the first three months of the current fiscal year, the revenue of the Volkswagen group in comparison with the previous year increased by 3.1 percent to 60.0 billion Euro. The increase resulted, in spite of volume losses in the deliveries to customers Mainly due to mix improvements, as well as the good business development in the financial services division. Gross profit what to 11.7 (or 11.6) billion Euro on the previous year’s level.
The Operating result before special items improved by 0.6 billion euros to 4.8 billion euros. The operating return on sales before special items increased to 8.1 (and 7.2 percent). Positive effects from the Fair Value evaluation of certain derivatives of, improvements in Mix and price positioning, as well as to the advantageous development of exchange rates were offset by higher fixed costs and lower vehicle sales. Negative special factors of legal risks in the amount of one billion Euro, impacted the Operating profit of 3.9 billion Euro 0.3 billion Euro year-on-year. The result from investments measured At Equity and the results of the Chinese joint ventures amounted to 800 million Euro on the previous year’s level. The result before taxes what 4.1 (4.5) billion euros lower than a year earlier. The net liquidity in the automotive division amounted to 16.0 billion euros.
Frank Witter, the chief financial officer of Volkswagen AG, said: “The Volkswagen group is once again off to a good start to the year. The development of sales and earnings in the first three months of the current financial year is encouraging. The Operating result is positively influenced by the valuation of derivative financial instruments – a Position that has a high volatility but. Overall, we need to increase our pace of Transformation. The increasing global economic risks are also challenges. Our aim for 2019, we still keep.“
Brands and business fields
The sales revenue of the Volkswagen passenger Cars brand increased in the first quarter by 7.1 percent to 21.5 billion euros. The Operating result before special items improved to 921 (879) million Euro. Impact from lower volumes and exchange rates were offset by improvements in Mix and price positioning, as well as a positive cost development. In the reporting period, negative special factors amounting to EUR 400 million.
The sales revenue of the Audi brand coat, among other things, as a result of the new Association of companies to 13.8 (15,3) billion euros. The Operating profit, which is 1.1 (1.3) billion. euros below the comparable figure for the previous year. Loads of Model and a spout in the context of the product offensive and the WLTP-induced supply fluctuations, as well as higher advance expenditure for new products and technologies by the Mix and margin improvements, as well as positive exchange rates not to be compensated. To increase the transparency and comparability are solved from 2019, the multi-brand distributor of the Audi brand.
The sales of the ŠKODA brand increased in the reporting period by 8.2 percent to 4.9 (4.5) billion euros. The Operating result fell to 410 million euros. The decline what is due to increases from negative exchange-rate effects and costs. Positive volume impact, however, increases and price measures.
The sales of the SEAT brand increased in the first quarter totaled 3.1 (2.8) billion euros. The Operating result increased in volume and mixbedingt by 5.5 per cent to 89 million euros. Pressures from cost increases were able to be compensated more than.
The sales of the Bentley brand rose in the first quarter to 456 (351) million Euro. The Operating result improved to 49 (-44) million euros, mainly from the availability of the new Bentley Continental GT and a favorable Mix and exchange rate developments resulted.
The sales of Porsche Cars were 5.2 (5,4) billion euros below the comparable figure for 2018. As a result of the market – and production-related volume decline, Operating profit for fur by 11.6 percent to 829 million Euro.
The sales of Volkswagen commercial vehicles were 3.3 (2.9) billion euros, 11.8% higher than in the first quarter of 2018. Especially higher volume and mix improvements and a favorable exchange rate development led to that the Operating profit increased by 29.9 percent to 291 million Euro.
Sales of Scania Vehicles and Services were 3.4 (3.0) billion euros. Scania improved its Operating profit to 370 (301) million euros. The higher vehicle sales, an improved original parts and service business, as well as to the advantageous development of exchange rates were able to offset pressures from cost increases.
MAN Nutzfahrzeuge recorded in the reporting period, sales revenues in the amount of 3,0 (2,8) billion euros. The Operating profit increased Mainly due to higher volumes to 115 (83) million euros.
Power Engineering achieved in the first three months of 2019 revenues in the amount of 891 (766) million euros. The Operating result decreased to 9 (21) million euros.
The Operating profit of the Volkswagen financial services rose in the first three months of the current fiscal year, 638 (608) million Euro.
Net liquidity in the automotive division, with the decline due to IFRS 16
The net liquidity in the automotive division amounted to by the end of March to 16.0 billion Euro. In accordance with the new accounting standard IFRS 16, since 1. January 2019 to be applied to the recognition of leasing liabilities within the financial liabilities increased Credit balance as at 31. March 2019 in the group division Automobiles to 5.1 billion euros. As a result of this non-cash effect, the net liquidity of the Automotive division, what is significantly below the value of 31. December, 2018 in the amount of 19.4 billion euros.
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Volkswagen continues to expect that deliveries to customers of the Volkswagen group in the year 2019 under challenging market conditions will continue to exceed the previous year’s value slightly. Challenges arise in particular from the economic environment, the increasing intensity of competition, volatility of exchange rate curves, as well as tightening of the WLTP requirements. Volkswagen expects that the sales revenue of the Volkswagen group of up to 5 percent year-on-year.
For the Operating result before special items of the group and of the range of Cars is expected in 2019, with an operating return on sales of between 6.5 and 7.5 percent. For the area of commercial vehicles is assumed to be an operating return on sales of between 6.0 and 7.0 percent. In the area of Power Engineering will be a slight increase in sales, a loss in the order of magnitude of the previous year is expected. For the financial services division aims to solve assumed a moderate increase in sales, Operating profit on the level of the previous year. Including special items, is expected for the group and for the area of passenger Cars, the operating return on sales, which is at the lower end of the expected corridor.
Mission Maximum (photo: Volkswagen AG)
