The Volkswagen group saw sales revenue in the first nine months of the year rise 24% to EUR144.2bn (US$186.6bn) as its share of the global car market climbed to 12.6% from 12.3% in the same period last year.

But operating profit fell from EUR9bn to EUR8.8bn which the company blamed on “write-downs relating to purchase price allocation for MAN and Porsche.”

CEO Martin Winterkorn said that “although the times aren’t easy, it’s up to us to systematically continue along our chosen path – the right path. We therefore remain committed to our ambitious goals for 2012, despite growing headwinds.”

Consolidated profit rose to EUR20.2bn from EUR13.6bn and finance chief Hans Dieter Pötsch said he was satisfied with business developments in light of the uncertain economic environment.

“We have always said that the second half of the year would be more difficult, so our performance is in line with expectations. We have achieved a robust result.”

Show the press release

Volkswagen Group confirms 2012 goals
Sales revenue up 24.0 percent to €144.2 billion (€116.3 billion) in the first
nine months
Operating profit of €8.8 billion (€9.0 billion)
Consolidated profit rises to €20.2 billion (€13.6 billion)
Global market share of passenger car market improves to
12.6 percent (12.3 percent)
Wolfsburg, October 24, 2012 – The Volkswagen Group maintained its positive
trajectory in the first nine months of 2012 despite difficult conditions. “Although the
times aren’t easy, it’s up to us to systematically continue along our chosen path – the
right path. We therefore remain committed to our ambitious goals for 2012, despite
growing headwinds”, said Prof. Dr. Martin Winterkorn, Chairman of the Board of
Management of Volkswagen Aktiengesellschaft, at the presentation of the Interim
Report on Wednesday.
The Volkswagen Group increased its sales revenue to €144.2 billion in the first nine months,
up 24.0 percent on the prior period from January to September 2011 (€116.3 billion). This
was due mainly to higher volumes and in particular the consolidation of MAN and Porsche.
Despite the more difficult environment, operating profit was on a level with the previous year
at €8.8 billion (€9.0 billion). At 6.1 percent (7.7 percent), the operating return on sales after
nine months was negatively impacted by write-downs relating to purchase price allocation for
MAN and Porsche in particular. The consolidated operating profit for the first three quarters
does not include the €2.8 billion (€1.9 billion) share of the operating profit of the Chinese joint
ventures. These companies are included using the equity method and are therefore reflected
in the financial result. The updated measurement of the put/call rights relating to Porsche, as
well as the remeasurement of the existing stake held at the contribution date also had a
clearly positive effect on the financial result. As a result, profit before tax after nine months
amounted to €23.0 billion (€16.6 billion) – an increase of 38.0 percent as against the prioryear
period. The figure after tax improved by 47.7 percent to €20.2 billion (€13.6 billion).
CFO Hans Dieter Pötsch was satisfied with business developments in light of the uncertain
economic environment. “We have always said that the second half of the year would be more
difficult, so our performance is in line with expectations. We have achieved a robust result.”
He is confident that the Volkswagen Group will master the challenges that lie ahead of it. “We
have a broad global positioning and our strong financial basis is practically unrivalled”, said
Pötsch. “Our relative strength compared with the competition shows that we are on the right
path.”
No. 454/2012
Page 2
Automotive Division net liquidity
Net liquidity in the Automotive Division following the full integration of Porsche, the
acquisition of motorcycle manufacturer Ducati and the increased stake in MAN SE amounted
to €9.2 billion as of the end of September 2012 (end of December 2011: €17.0 billion).
Investments in property, plant and equipment in the Automotive Division rose by €1.7 billion
to €6.0 billion. Nevertheless, the Volkswagen Group maintained its investment discipline. The
ratio of investments in property, plant and equipment (capex) to sales revenue in the
Automotive Division amounted to 4.6 percent (4.1 percent). Investments related primarily to
production facilities, the switch to the Modular Transverse Toolkit, new products and the
ecological alignment of the model range. “Our disciplined cost and investment management
and the continuous optimization of our processes remain core components of our strategy”,
said Pötsch.
Brands and Business Fields
Continuing strong demand for Group vehicles in almost all important markets around the
world saw unit sales by the Volkswagen Group rise 12.5 percent to approximately
7.0 million vehicles (6.2 million) in the first nine months. Including Porsche, the Group’s share
of the global passenger car market increased to 12.6 percent as against 12.3 percent in the
prior-year period.
The Volkswagen Passenger Cars brand sold 3.6 million vehicles (3.3 million) in the first three
quarters. This corresponds to an increase of 9.7 percent compared with the prior-year period.
The Passat for the US market, as well as the Touareg, Tiguan, Golf Cabriolet and Fox
models recorded high growth rates. There was also strong demand for the new up! and
Beetle models. Operating profit amounted to €2.9 billion (€3.3 billion) and reflects in
particular upfront expenditures for the Modular Transverse Toolkit alongside startup costs for
the new Golf.
Ingolstadt-based premium car manufacturer Audi recorded unit sales of 1.0 million vehicles. A
further 247,000 Audi vehicles were sold by the Chinese joint venture FAW-Volkswagen. The
Audi A8, Audi A7 Sportback, Audi A6, Audi Q7 and Audi Q5 models recorded the highest
growth rates. Demand for the new Audi A1 Sportback and Audi Q3 models was also strong.
Higher volumes (vehicles and vehicle parts), more favorable exchange rates and product
cost optimization measures saw operating profit rise to €4.2 billion (€4.0 billion).
ŠKODA posted a 7.9 percent year-on-year increase in unit sales to 551,000 vehicles
(511,000). Demand increased for the Octavia, Roomster and Yeti models, as well as for the
Rapid in India. Operating profit was on a level with the previous year at €567 million
(€575 million).
SEAT sold 315,000 vehicles (267,000) worldwide. This corresponds to an increase of
18.3 percent and includes the Q3 manufactured for Audi. The strong decline in the Southern
European markets had a negative impact. Germany and the United Kingdom exceeded their
prior-year sales figures. The brand’s operating loss narrowed by €6 million
to €95 million.
No. 454/2012
Page 3
Luxury carmaker Bentley increased sales by 29.4 percent to 7,000 vehicles (5,000).
Operating profit amounted to €73 million, €79 million higher than in the previous year.
Porsche’s figures were included in the Volkswagen Group’s data in August and September
2012 for the first time. The brand recorded unit sales of 22,000 vehicles and an operating
profit of €389 million.
In the period from January to September, Volkswagen Commercial Vehicles sold
330,000 vehicles (328,000) and generated an operating profit of €300 million (€328 million).
Unit sales by Swedish commercial vehicles manufacturer Scania declined by 20.5 percent to
47,000 vehicles (59,000). The brand’s operating profit amounted to €688 million (€1.1 billion).
Commercial vehicles, engines and power engineering equipment manufacturer MAN sold
101,000 vehicles. Its operating profit was €515 million.
Volkswagen Financial Services generated an operating profit of €988 million (€876 million) in
the first three quarters of 2012, exceeding the prior-year figure by 12.9 percent on the back
of volume and currency-related factors.
Winterkorn: “We are committed to our ambitious goals for 2012.”
“The Volkswagen Group is well positioned thanks to its twelve strong brands, young and
attractive product portfolio, growing presence in all major regions of the world and flexible
production. All of these factors also represent the basis for our commitment to our ambitious
goals for 2012”, stressed Winterkorn. The attractiveness of the Group has been further
boosted by the integration of Porsche, with its offering of exclusive sports cars. The
Volkswagen Group’s brands will again launch fascinating new models in the remaining
months of 2012 to help expand their strong position in the global markets. As a result,
Volkswagen expects to increase deliveries to customers year-on-year.
The Volkswagen Group also reiterated its goal to beat the prior-year sales revenue. This will
be helped in part by the consolidation of MAN SE as of November 9, 2011, which is not
expected to make a positive contribution to earnings because of the write-downs required for
purchase price allocation. The increase in sales revenue from the consolidation in full of
Porsche as of August 1, 2012 will be relatively slight due to consolidation effects. The high
initial write-downs from purchase price allocation are expected to largely offset Porsche’s
contribution to earnings in operating profit for the fiscal year.
The goal for operating profit remains to match the 2011 level.
The complete interim report is published on our website at:

Original source: http://www.volkswagenag.com/ir/Q3_2012_e.pdf