Published on July 28th, 2017 | by Daniel Sherman Fernandez0
Guess what……you will not believe this but VW Group’s operating profit is UP!
Yes, its true, the Volkswagen Group remains in robust shape: The first six months of the current fiscal year have delivered a solid set of results, accompanied by further progress in implementing the future program “TOGETHER – Strategy 2025”.
Between the beginning of January and the end of June, Group sales revenue rose by 7.3% to EUR 115.9 billion. During that period, operating profit increased to EUR 8.9 billion (from 7.5 in the previous year) and operating return on sales grew to 7.7% (from the prior-year 7.0%).
All prior-year figures exclude the special items at that time. For Frank Witter, Member of the Board of Management, responsible for Finance and Controlling, the result of the first 6-months was a “good team performance” in the face of persistently difficult conditions. “The results were boosted by growth in unit sales. Increases in the first half-year were seen primarily in Europe, but also in North and South America, which is particularly encouraging.
The Group’s operating profit does not include the proportionate operating profit from the Chinese joint ventures. This amounted to EUR 2.1 (2.4) billion in the first half-year. These companies are accounted for using the equity method and are therefore solely reflected in the Group’s financial result. Rising to EUR 9.0 (4.8) billion, the Volkswagen Group’s profit before tax in the first half-year nearly doubled in comparison to the prior-year figure, which had been negatively affected by special items. Profit after tax amounted to EUR 6.6 (3.6) billion.
Matthias Müller, Chairman of the Board of Management of the Volkswagen Group, commented on the results for the first six months: “The remarkable half-year result and the excellent development with regard to deliveries in June are confirmation that the Volkswagen Group is on the right path again. We are grateful for the growing amount of trust we are enjoying among customers and on the capital markets. The solid footing of our operating business serves as the basis for our work, namely to transform the Volkswagen Group from a pure car maker into a world-leading provider of sustainable mobility. The half-year report also reveals the huge potential inherent in our multi-brand enterprise. I am confident that we can work together to complete the transformation we envisage.”