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Posts Tagged ‘vw earnings’

Another Surprise: VW Lands in Global Sales Lead Despite Diesel Drop

Toyota slips to second after production problems.

by on Jul.29, 2016

VW hopes to keep momentum building - despite its diesel woes - with new products like the Alltrack.

A day after reporting a sharp drop in second-quarter earnings, embattled German automaker Volkswagen AG got some good news. Despite its ongoing diesel emissions problems, VW is once again the world’s best-selling automaker – albeit because of a series of unexpected production problems that have been hobbling Japanese giant Toyota in recent months.

Hit by both natural and man-made disasters, Toyota has repeatedly been forced to trim home market production, and the result was a global slide of 0.6% in sales for the first half of 2016, to 4.992 million vehicles. A year earlier, the automaker sold 5.021 million Toyota, Lexus and Daihatsu-branded vehicles from January through June.

By the Numbers!

Though sales have been down in some markets, notably including the U.S., where it can’t sell its once-popular diesel models, VW managed to deliver 5.116 million cars, trucks and crossovers for the first half of this year, a 1.5% increase.


VW Delivers Profitable Surprise

Earnings “significantly higher” despite diesel scandal.

by on Jul.20, 2016

Regaining momentum: VW delivers a strong, first-half profit despite the costs of its diesel scandal.

Volkswagen AG beat its earnings forecast for the first half of 2016, delivering “significantly higher” profits even while setting aside another 2.2 billion euros, or $2.4 billion, to cover the growing cost of its diesel emissions scandal.

The news comes a day after New York and two other states filed suit against the embattled German maker, claiming senior executives had helped cover up the diesel emissions subterfuge. Last month, VW agreed to a $14.7 billion settlement covering its 2.0-liter diesel, a deal that includes $10 billion to buy back nearly 500,000 vehicles.  Most of the funds VW has so far committed to settle what it calls the “diesel issue” came out of 2015 earnings, however.

By the Numbers!

For the first half of 2016, VW said it had an operating profit of 7.5 billion euros, or $8.25 billion. That would drop to 5.3 billion euros after factoring in the latest charges for the emissions scandal, money largely related to legal costs in North America.


VW Back in the Black but Diesel Scandal Takes a Stiff Toll

Profits down 20% year-over-year.

by on May.31, 2016

VW gets back into the black for Q1, but the maker see lower sales and smaller margins for all of 2016.

Volkswagen AG clawed its way back into the black during the first quarter of this year following the spectacular plunge it took last year as it dealt with a global diesel emissions scandal.

Even so, the maker’s $2.6 billion profit for the January-March quarter was down 20.1% from year earlier numbers. Excluding one-time items, VW’s operating profit was down 5.9%, to $3.5 billion. Sales and other revenues, meanwhile, slipped 3.4%, to $56.8 billion.

By the Books!

“In light of the wide range of challenges we are currently facing, we are satisfied overall with the start we have made to what will undoubtedly be a demanding fiscal year 2016,” VW CEO Matthias Mueller said in a statement.


VW Delays 2015 Earnings Results, Annual Shareholders’ Meeting

Labor boss will “hold management responsible” for making needed changes.

by on Feb.05, 2016

Audi has submitted a plan to US officials for fixing the diesel engines in models like the Q7.

With management still trying to get a full grip on the diesel emissions cheating scandal that has rocked the world’s second-largest automaker, Volkswagen says it will delay the release of its 2015 earnings, as well as its annual shareholders meeting.

It is also unclear when VW will now publish the results of an internal investigation into the ongoing crisis. The report was to have been released in time for the company’s annual meeting. Leaked details have hinted that the subterfuge was an “open secret,” resulting from a corporate culture in which failure to meet even the most difficult goals was not an option.

Global News!

The annual shareholders meeting was scheduled for April 21, but VW said it will announce new dates for the gathering and the release of its earnings, explaining that it first must deal with “remaining open questions and the resulting valuation calculations relating to the diesel emissions issue.”


Volkswagen Drops $1.83 Bil into the Red for Q3

Senior exec apologizes for diesel emissions scandal during Tokyo Motor Show news conference.

by on Oct.28, 2015

The real battle for world dominance will be in China where VW is firmly entrenched.

VW only began to feel the impact of its diesel scandal during the third quarter.

Only starting to feel the financial pain from its diesel emissions scandal, Volkswagen AG reported a $1.83 billion third-quarter loss on Wednesday.

The German maker also announced that it saw a 1.5% year-over-year decline in vehicle sales for the first nine months of 2015, to 7,430,794. VW surged to first place in the global sales race during the first half of the year, but it has now slipped back into second, losing its lead to Toyota Motor Co.

In the Know!

Third-quarter sales and earnings were only partially impacted by the revelation that VW had cheated on diesel emissions tests by installing special software in 11 million vehicles sold worldwide – including 482,000 in the U.S. During an appearance at the Tokyo Motor Show earlier on Wednesday, a senior VW official bowed an issued an apology.


After Management Shake-Up, New VW Brand Boss Lays Out His Plans

Steady as she goes, says former BMW exec Herbert Diess.

by on Jul.10, 2015

Former BMW exec Herbert Diess took over as VW brand boss on July 1st.

After a bruising internal fight for control of the company, Volkswagen management is putting on a show of solidarity, hoping to calm internal jitters and, it would seem, skeptical analysts and investors.

The once-powerful Chairman Ferdinand Piech was pushed to resign in April in a dispute with his likely successor, CEO Martin Winterkorn. In turn, the chief executive is putting in place a major realignment that will effectively divide VW AG into a series of near-autonomous holding companies.

Management News!

The biggest will be run by Herbert Diess whom Winterkorn personally poached from rival BMW. In a Q&A published on the company’s internal website, Winterkorn and Diess outlined their plans for the future.


Amidst Management Turmoil, VW Delivers Strong Earnings

German maker takes a sharp knife to costs.

by on Apr.29, 2015

VW scored a strong hit with the launch of its latest-generation Golf family.

While its boardroom may be racked with turmoil amidst the ouster of its long-time chairman, Volkswagen AG managed to salve investors’ concerns a bit with news that its first-quarter earnings rose 19%, to $3.23 billion.

The maker says it was able to cut costs “in the low triple-digit millions” during the January-to-March period, addressing a problem that had begun to worry analysts – and raise concerns within its boardroom. The maker also benefited from the nascent recovery of the European market which is just emerging from its worst downturn in decades.

Your Reliable Source!

The numbers reported by the 12-brand Volkswagen Group came in ahead of what industry analysts had forecast and, with the maker forecasting continued growth ahead, it could bode well for the post-Piech era.


Though Revenues Slip, VW Beats Q2 Earnings Expectation

Audi drives profit surge.

by on Jul.31, 2014

VW CEO Martin Winterkorn wants to balance profitability and aggressive growth going forward.

The world’s second-largest automaker beat expectations with a strong second quarter profit, up 14.1%, despite a decline in revenues.

The Thursday release of Volkswagen AG’s earnings revealed that its biggest luxury line, Audi AG, helped offset some problems at its namesake brand. The report came as VW begins a major effort to shift its focus from raw growth to a more profitable expansion plan, with Chief Executive Officer Martin Winterkorn planning to cut costs and boost productivity.

Your Auto News Source!

“In light of the continued strong competitive pressures, the tense situation in some emerging economies and the fundamental technical and economic changes happening in our industry, we are working hard to create all the conditions we need today to ensure success tomorrow,” the CEO said in a statement accompanying the earnings release.

VW earned 3.25 billion Euros, or $4.35 billion, during the second quarter, up from 2.85 billion during the same period a year ago. The consensus of 13 industry analysts polled by the Bloomberg news service had anticipated earnings of 3.31 billion Euros.


VW Earnings Plunge 38% as Euro Market Collapses

Maker remains world’s third-best seller.

by on Apr.24, 2013

Despite the strong reviews for the new Golf, VW earnings were hit hard by problems in Europe.

The ongoing collapse of the European automotive market took a heavy toll on the world’s third-largest automaker by unit sales, Volkswagen AG reporting a 38% decline in first-quarter profits.

The maker previously had been able to offset the worst of the European downturn by counting on strong demand in other key markets, especially China. But the results of the first quarter shows it is being caught up in the same net that is expected to hammer earnings for essentially all manufacturers operating on the Continent – including Ford and Daimler, both of whom also reported earnings today.

Global Auto News!

Europe’s biggest automaker said it earned 1.95 billion euros, or $3.15 billion, for the January-March quarter, down from 3.15 billion euros a year ago. Revenue, meanwhile fell 1.6 percent, to 46.57 billion, due to what VW called “negative effects from declining European markets.”


VW Earnings Surge 41% as Sales Hit New Peak

But 2013 forecast gloomy as European market staggers.

by on Feb.22, 2013

Bigger profit, smaller paycheck for VW CEO Winterkorn.

What should have been an especially good bit of news for Volkswagen was tempered by the maker’s less-than-upbeat outlook for the European market this coming year.

The German maker, which was the world’s third-largest automotive manufacturer in 2012, saw a 40.9% surge in its 2012 net profit, with revenues jumping 20.9% for the year. Volkswagen AG said its operating profit increased by 2.1% for the year.

Your Auto News Source!

The maker said it expects to “outperform the market as a whole in a challenging environment” during 2013, with a further increase in sales anticipated. But the statement by CEO Martin Winterkorn added a cautionary note that, “We are not completely immune to the intense competition and the impact this has on the business.”