Despite a record turnover of EUR6,473m euros in 2013 – up 6.3% year on year – Volkswagen group Spanish unit SEAT booked a large increase in operating loss: EUR217m versus EUR134m in 2012.
The automaker blamed “fierce market competition in western Europe” (its largest trading region), with “challenging economic difficulties in the region” resulting in diminished revenue per unit.
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The operating result was also affected by higher personnel and restructuring costs, and an increase in amortisations due to the launch of new models, SEAT added.
The after tax loss swelled to EUR149m compared to the EUR30m lost in 2012.
“2013 was a difficult and demanding year, but SEAT proved its potential by joining the ranks of the fastest growing brands in Europe and set sales and production records for the past years,” president Jürgen Stackmann said in a statement.
The automaker said it had made “enormous investment efforts over the past five years in order to guarantee its future” – over EUR2,600m for investments and R&D expenses.
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By GlobalDataEBITDA (earnings before interest, tax, depreciation and amortisation), however, improved 73% to EUR221m.
For the first time since 2007, investments were fully covered by operating cash flow, the automaker said.
Holger Kintscher, vice president for finance and organisation, stressed: “SEAT has carried out an important streamlining of the balance sheet that consolidates its financial position. The company has considerably increased its ability to self-finance investments and has also improved the quality of its operating business.”
Leon model sales last year rose 44.4% to 102,000 units of SEAT’s 355,000-unit tally – up 10.6%.
SEAT in 2013 reduced its dependence on the Spanish home market and expanded internationally, exporting 83% of its output compared to 75% in 2009.
Production of the Leon, Ibiza and Altea plus the second complete year of Q3 production for VW group premium brand Audi Q3 saw the Martorell plant build its largest number of vehicles since 2007 with output up 3.4% to about 390,000 units.
The brand created more than 1,000 jobs last year, and the workforce has risen from 10,369 in 2009 to 11,458.
Additional versions of the Leon and Ibiza are being launched this year.
