Skoda Auto nearly doubled its 2004 pre-tax profit, according to a Reuters report.
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Skoda reportedly said pre-tax profit jumped to 4.82 billion crowns ($US213.1 million) from 2.52 billion in 2003, while sales rose to 153.55 billion from 145.20 billion. Net profit rose to 3.50 billion crowns from 1.48 billion.
Reuters said Skoda’s unit sales edged up to 451,675 in 2004 from 449,758 in the previous year. Sales slipped on the domestic market and in central Europe, but total sales were supported by a 2% rise in western Europe, its key market, and fast-growing sales in eastern Europe and Asia, mainly in India [where it has a CKD kit assembly plant].
“The first months are showing that (unit sales) will be above planned indicators,” a spokesman told Reuters, adding the sales were again driven by the upgraded Octavia.
The report added that Skoda managed a 4% year-on-year rise in sales in January and hopes for a similar increase for the whole year, despite problems in the Czech and Polish markets, where it competes with heavy used car imports from the older EU member states.
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By GlobalDataSkoda’s vice-chairman Winfried Vahland told Reuters the company should reach its plan for a 9% return on capital this year, up from 6.8% in 2004, partly helped by the falling corporate tax rate.
