VW records profit despite slide in demand : global share rises to 11.7% To add to the interesting info. posted above :
From the Financial Times.
VW records profit despite slide in demand
By James Wilson in Frankfurt
Published: October 29 2009 10:40 | Last updated: October 29 2009 10:40
Volkswagen, Europe’s biggest carmaker, succeeded in generating a second successive quarterly profit in spite of slumping demand in most of the world’s big vehicle markets.
Net income in the three months to the end of September fell from €1.1bn ($1.62bn) a year ago to €161m, putting VW on course to close 2009 with a profit. But the carmaker confirmed that annual sales revenue would be lower than in 2008 after the decline in revenue continued during the quarter, leaving sales in the year to date almost 10 per cent lower than in the same period last year at €77.2bn.
Vehicle sales did rise more than 4 per cent during the third quarter, helped by a “cash for clunkers” stimulus in Germany and strong demand in China. But VW said those markets, as well as Brazil and India, remained “notable exceptions” in contrast to the dramatic downturn in other markets.
In western Europe, which accounts for just under half of group sales, deliveries fell 3.8 per cent in the first nine months of the year, while they were 9.6 per cent lower in the US.
“The group is holding its own extremely well despite the adverse conditions. While the global market is contracting by 12 per cent, we are recording stable delivery levels,” Mr Winterkorn said. Group share of the global passenger car market rose to 11.7 per cent compared with 10 per cent a year ago, according to VW.( Emphasis mine)
Pre-tax profit fell from €5.3bn to €1.1bn in the first nine months, while net income for the same period fell from €3.7bn to €655m. Among the worst-performing brands during the first nine months were Seat and Skoda, where sales were down 19 per cent in both cases, and Bentley, where what VW described as a “heavy slump” in sales pushed the UK-built luxury brand into an operating loss of €148m.
However the Audi premium brand generated an operating profit of €1.2bn, compared with €2.1bn last year, on a 12 per cent drop in unit sales.
VW shares rose 0.6 per cent to €110.82 by mid-morning in Frankfurt.
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