Although Q3 profits were reduced at both Ford and Daimler, Volkswagen group said it earned more in the first nine months of 2011 than in the whole of 2010.
Operating profit rose to EUR9.0bn, up from EUR7.1bn in fiscal 2010.
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There was a 14.1% increase in vehicle deliveries to 6.2m (January-September 2010: 5.4m). Global market share climbed to 12.4% (11.6%). Sales revenue increased by 25.6% in the first nine months to EUR116.3bn (EUR92.5bn). Operating profit jumped 86.0% to EUR9.0bn (EUR4.8bn) and the operating return on sales improved to 7.7% (5.2%).
The consolidated operating profit did not include the group’s EUR1.9bn share of the operating profit from the Chinese joint ventures (EUR1.4bn).
The updated measurement as of the reporting date of the put/call options on Porsche Zwischenholding had a positive effect on the financial result. Profit before tax tripled to EUR16.6bn (EUR5.4bn). The profit after tax improved by EUR9.6bn to EUR13.6bn.
CFO Hans Dieter Pötsch said: “We have further increased our profitability and impressively demonstrated the robustness of our group. We are on the right track with our strict cost and investment discipline and will systematically continue along this path,” said Pötsch.
The Volkswagen Passenger Cars brand sold 3.3m vehicles (2.8m) worldwide in the first nine months of the year, up 16.7% year on year. Operating profit improved by EUR1.7bn to EUR3.3bn.
Audi’s unit sales rose by 17.8% to 1.1m vehicles (1.0m). Operating profit climbed by 74.4% to EUR4.0bn (EUR2.3bn).
Škoda recorded a 19.9% increase in unit sales to 511,000 vehicles (426,000). Operating profit improved by EUR261m to EUR575m.
Unit sales at Seat edged up 2.7% in the reporting period to 267,000 vehicles (260,000). The brand’s operating loss reduced to EUR101m compared EUR218m in 2010.
Bentley sold 5,000 vehicles in the first three quarters, an increase of 51.2%. At EUR6m, the brand’s operating loss was substantially smaller than 2010’s EUR145m.
Volkswagen Commercial Vehicles increased sales 32.4% to 328,000 units and more than doubled its operating profit to EUR328m (EUR142m).
Scania increased sales 35.4% to 59,000. Operating profit climbed to EUR1.1bn from EUR0.9bn.
Volkswagen Financial Services generated an operating profit of EUR876m, an increase of 27.9%.
The Volkswagen Group forecasting an improvement on its prior-year figures for full-year 2011.
“We expect group sales revenue and operating profit in 2011 to be significantly higher than in the previous year”, said chief Martin Winterkorn. The group is also expecting deliveries to be up year-on-year. However, the continuing volatility in interest and exchange rate trends and commodities prices will weaken the positive volume effect.
“In light of the current economic uncertainties, we are continuing to monitor developments in the global automotive markets extremely closely”, said the CEO. The strained debt situation in certain eurozone countries and the end of subsidy programmes will have a negative impact on demand for new vehicles in many western European markets in the fourth quarter. By contrast, the group expects new vehicle registrations to rise in central and eastern Europe, as well as in North and South America. Positive trends in the key markets of China and India will also continue. Overall, global demand for passenger cars in 2011 is expected to exceed the level for 2010.
The Volkswagen Group regards itself as well positioned despite the mixed development in the various markets.
According to Winterkorn, the group’s key competitive advantages are its unique brand portfolio and its continually growing presence in all key regions of the world.
