Volkswagen Group maintains profitable growth trajectory

The Volkswagen Group maintained its profitable growth trajectory in the first half of 2011, extending its leading position in the global market. “Our unique brand diversity and highly attractive products, our leading position in the field of environmentally-friendly technologies, our financial strength and our constantly growing presence in all key areas of the world are key competitive advantages for the Volkswagen Group”, said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, on Thursday at the presentation of the financial report for the first six months of the year.
At 4.1 million (H1 2010: 3.6 million), vehicle deliveries by Europe’s largest automotive group were up 14.3 percent, topping the strong figures for the previous year. Global market share rose from 11.7 percent in the first half of 2010 to 12.4 percent. Sales revenue in the first six months of the current year was up 25.8 percent on the prior-year period, to €77.8 billion (€61.8 billion). Operating profit more than doubled, climbing from €2.8 billion to €6.1 billion.
The operating return on sales rose from 4.6 percent to 7.8 percent year-on-year. The consolidated operating profit does not include the Group’s €1.2 billion share of the operating profit from the Chinese joint ventures (€0.8 billion). These companies are included using the equity method and are therefore reflected in the financial result. The measurement as of the reporting date of the put/call options on Porsche Zwischenholding GmbH had a positive effect on the financial result. Profit before tax for the first half of the year amounted to €8.2 billion (€2.6 billion). The figure after tax increased to €6.5 billion (€1.8 billion).
CFO Hans Dieter Pötsch was also satisfied with business developments. “We have recorded a further increase in profitability”, he said. The Volkswagen Group is benefiting from dynamic growth in almost all regions of the world. In addition to higher unit sales, amongst others, lower product costs contributed to the increase in profitability. “In view of the global economic challenges, we are well advised to maintain our cost and investment discipline and to further improve our financial strength”, Pötsch continued.