Volkswagen has raised its forecast and now expects profit before tax of at least EUR5.1bn in 2007, reaching its goal a year earlier than planned.
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“We have significantly improved our financial position in the first six months and will sell more than 6m vehicles this year for the first time. We are therefore forecasting that the Volkswagen Group will generate a profit before tax of at least EUR5.1bn in 2007”, said Volkswagen CFO Hans Dieter Pötsch, announcing first half results.
This year’s operating profit would “significantly exceed the previous year’s operating profit before special items”, he added.
The group delivered 3.1m vehicles worldwide, a 7.8% increase and a half-year record.
“Our attractive vehicles are popular with customers, and we have further improved our position in our most important markets”, said Pötsch. “We have also made progress in productivity and in the capacity utilisation of our plants. The sustainable improvement in our cost structures and processes has led to a significant increase in our earnings power.”
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By GlobalDataSales revenue grew 5.7% to EUR54.9bn and operating profit was EUR2.8bn, described by the automaker as a “significant year-on-year increase” without providing data.
Profit before tax improved by EUR2.3bn to EUR3.0bn and the group made an after-tax profit of EUR2.0bn compared with EUR1.2bn a year ago.
VW said all group brands posted a further improvement in their operating profit (though Seat’s result was still written with red ink).
Volkswagen Passenger Cars operating profit rose EUR594m to EUR981m in the first six months, reflecting the good volume sales growth and improved cost structures. At EUR1.0bn, the Audi brand’s operating profit was up year-on-year by EUR291m, while Lamborghini also posted “encouraging growth”.
Škoda operating profit rose EUR60m to EUR356m while struggling Spanish unit Seat “significantly reduced the previous year’s loss” but still posted a loss of EUR7m.
Bentley – as reported elsewhere on just-auto today – generated an operating profit of EUR85m in the first six months, a substantial year-on-year increase of EUR59m.
Operating profit at Volkswagen Commercial Vehicles grew by EUR20m to EUR121m. Financial Services Division operating profit rose EUR26m to EUR511m.
“The good results and the disciplined management of costs and investments led to a substantial improvement in liquidity in the Automotive Division,” VW said.
