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).
“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.