“In view of the global economic challenges, we are well advised to maintain our cost and investment discipline and to further improve our financial strength.”
In Wolfsburg this morning the Volkswagen Group said it earned a profit of €3.17 billion for Q2 2011. This 59% increase in profit will be followed by even higher vehicle sales in the second half of 2011, Europe’s largest automaker said. However, VW was cautious about the implications for profitability.
Sales of cars and light trucks increased 15% in the quarter, helped by the launch of a new Passat in China, the launch of the new Beetle in the U.S. and Europe. Audi also continued to perform strongly in global markets. Volkswagen Group’s operating margin was 7.8% in the quarter, up from 4.6% a year earlier. (See Volkswagen Group Posts Record Sales for First Half of 2011)
Global market share rose from 11.7% in the first half of 2010 to 12.4%. Sales revenue in the first six months of the current year was up 25.8% on the prior-year period, to €77.8 billion (€61.8 billion). Operating profit more than doubled, climbing from €2.8 billion to €6.1 billion. The consolidated operating profit does not include the Group’s €1.2 billion share of the operating profit from the Chinese joint ventures (€0.8 billion).
Volkswagen said despite troubles in Western Europe, global car markets will reach an all-time record this year. (See Passenger Car Sales Down in EU Again as Economy Struggles)
However, the outlook is cautiously hedged:
“In view of the global economic challenges, we are well advised to maintain our cost and investment discipline and to further improve our financial strength,” said CFO Hans Dieter Pötsch.
Nevertheless, the Board of Management expects the Volkswagen Group’s 2011 sales revenue and operating profit to be significantly higher than the previous year.
