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VW First Quarter Profit Drops

Despite drop, maker’s market share improves.

by on Apr.29, 2013

Volkswagen reported a drop in income, but an increase in Q1 market share.

Volkswagen AG saw its earnings and revenue decline on a year-over-year basis during the first quarter as the European debt crisis continued to stifle sales across Europe and left the company’s Seat brand in the red.

VW’s after tax earnings fell to 1.9 billion euro, or $2.5 billion, from 3.1 billion. Overall, VW’s sales revenue in the first three months dropped 1.4% to 46.6 billion euros from 47.3 billion euros in the first quarter of 2012.

Despite the challenging conditions and intense competition VW bolstered its overall global market share, which climbed to 12.6% from 12.2%. Including China, deliveries increased by 4.8% to 2.3 million vehicles worldwide.

Geared Up for News!

“We made a healthy start to the year, but the coming months will be anything but easy. The current environment is definitely a tough challenge for the entire industry,” said VW Chairman Martin Winterkorn, adding he remained optimistic about the company’s outlook.

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Volkswagen Group Q3 Results Down 86%

Germany's largest automaker is struggling with profitability.

by on Oct.29, 2009

Head of Group Design Walter de Silva, left, describes his design philosophy of “Simplicity and character, esthetics and precision” to Dr. Martin Winterkorn, Chairman of Volkswagen Board of Management, right.

Walter de Silva, left, describes his design philosophy of Simplicity to Dr. Martin Winterkorn, Chairman of Volkswagen Board of Management.

Volkswagen Group AG reported a third-quarter after tax profit decline of 86% compared to the year earlier period, as vehicle prices dropped and revenue fell 10%. Net income was €172 million ($255 million), or 43 cents a share, compared €1.21 billion or €3.02 a share a year earlier.

The largest automaker in Europe reported an operating profit of €1.5 billion in the first nine months of this year compared to January – September 2008 profits of €4.9 billion. For Q3, profit was €1.61 million, compared to €1.16 billion a year earlier.

As of September, the Automotive Division’s net cash flow improved to €5.1 billion compared to -€0.1 billion in the year earlier period.

“The Volkswagen Group is holding its own extremely well despite the adverse conditions. While the global market is contracting by 12%, we are recording stable delivery levels. This proves that – even in difficult times – we are well positioned with our multi-brand strategy,” said Dr. Martin Winterkorn, Chairman of Volkswagen Board of Management.

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VW AG Q2 Income Drops 83% but Remains in Black

Q2 Profit of €283 million comes from Chinese and Brazilian markets as Europe and U.S. remain weak.

by on Jul.30, 2009

VW's WinterKorn and Merkel

German Chancellor Angela Merkel talks to employees at Volkswagen do Brasil.

Volkswagen AG, the biggest carmaker in Europe and soon to be owner of Porsche, rung up second quarter results that look like the worst of the Great Recession is over for it, according to our reading of its latest financial statement issued this morning.

The Wolfsburg-based German maker saw sales of light vehicles decline 4.4% during the first half of 2009, as the global sales declined 18%. This relatively better performance than the overall market came in spite of troubles with its Skoda and Seat brands in Europe, notably in Spain and the U.K. 

The real growth, which kept VW Group in the black during Q2 to the surprise of some analysts, came from strong performances by the VW brand in Brazil (+7%) and China (+23 %), now VW’s largest market. Audi also contributed with its strong performance in the Chinese market.

Results were also strong for the first half of 2009 as the Group made a €1.2 billion operating profit in H1 2009. Its global market share is now 12%.

In the first six months of the year, Europe’s largest automobile manufacturer delivered 3.1 million (H1 2008: 3.3 million) vehicles worldwide. Sales revenue declined by 9.4% to €51.2 billion (€56.5 billion ’08) in the first six months due to volume-related factors. Operating profit amounted to €1.2 billion (€3.4 billion), of which €928 million is attributable to the seasonally strong second quarter. The Group generated profit after tax of €494 million (€2.6 billion).

Q3 is Next!

Q3 is Next!

“The course of the year so far shows that we are excellently positioned, thanks to our multi-brand Group model. Even in a particularly difficult phase in the international automotive markets we were able to gain share in key markets. This has further improved our position on our way to the top,” said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen AG’s Board of Management.

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