The Volkswagen Group has raised its forecast for fiscal year 2007 and will reach its target one year earlier than originally planned. “We have significantly improved our financial position in the first six months and will sell more than six million vehicles this year for the first time.
We are therefore forecasting that the Volkswagen Group will already generate a profit before tax of at least €5.1 billion in 2007,” said Hans Dieter Pötsch, Volkswagen AG’s CFO, presenting the figures for the first six months. 2007 operating profit will significantly exceed the previous year’s operating profit before special items.
The Volkswagen Group sold more vehicles in the first half of the year than in any previous six-month period. "Our attractive vehicles are popular with customers, and we have further improved our position in our most important markets", said Pötsch.
The Group delivered 3.1 million vehicles worldwide, an increase of 7.8 percent. "We have also made progress in productivity and in the capacity utilization of our plants. The sustainable improvement in our cost structures and processes has led to a significant increase in our earnings power", Pötsch continued.
Sales revenue grew by 5.7 percent to €54.9 billion, and at €2.8 billion, operating profit recorded a significant year-on-year increase. Profit before tax improved by €2.3 billion to €3.0 billion. The Volkswagen Group generated a profit after tax of €2.0 billion (previous year: €1.2 billion).
All of the Group’s brands recorded a further improvement in their operating profit. The Volkswagen Passenger Cars brand increased its operating profit by €594 million to €981 million in the first six months, reflecting the good volume sales growth and improved cost structures. At €1.0 billion, the Audi brand’s operating profit recorded year-on-year growth of €291 million, while Lamborghini also posted encouraging growth. The Škoda brand was again successful, with operating profit rising by €60 million to €356 million.
Thanks to the measures introduced to improve earnings performance, SEAT significantly reduced the previous year’s loss, recording an operating loss of €7 million. The Bentley brand generated an operating profit of €85 million in the first six months, a year-on-year increase of €59 million. Operating profit at Volkswagen Commercial Vehicles also grew, rising by €20 million to €121 million. The Financial Services Division again made a significant contribution to the Volkswagen Group’s earnings. Its operating profit grew by €26 million year-on-year to €511 million.
The good results and the disciplined management of costs and investments led to a substantial improvement in liquidity in the Automotive Division. At 3.3 percent, the ratio of investments in property, plant and equipment to sales revenue (capex ratio) remained at a low level in the first half of the year. Net liquidity increased significantly compared with the end of 2006 to €11.8 billion.