WOLFSBURG (dpa-AFX) - Auto giant Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) reported that its Passenger Cars brand sales revenue rose 6.8 percent to 84.6 billion euros in 2018. The increase in vehicle sales and improved product costs had a positive effect. Higher sales expenses resulting from factors such as the environmental bonus, exchange rate effects and upfront expenditures for new products, especially in connection with the implementation of the electric mobility campaign, weighed on the operating profit. Operating profit before special items amounted to 3.2 billion euros, compared to 3.3 billion euros last year.
Sales revenue of the Audi brand were 59.2 billion euros, compared to 59.8 billion euros last year. Operating profit before special items amounted to 4.7 billion euros, compared to 5.1 billion euros in the previous year. Mix improvements, positive exchange rate effects and product cost optimization were unable to compensate for lower vehicle sales and higher sales costs, both of which primarily reflect the impact of WLTP, as well as higher depreciation and amortization charges due to the large volume of capital expenditure.
Volkswagen expects that deliveries to customers of the Volkswagen Group in 2019 will slightly exceed the prior-year figure amid continuously challenging market conditions. Challenges will arise particularly from the economic situation, the increasing intensity of competition, exchange rate volatility and stricter WLTP requirements.
Volkswagen expects the sales revenues of the Volkswagen Group to grow by as much as 5% year-on-year. In terms of the operating profit for the Group, Volkswagen forecasts an operating return on sales in the range of 6.5-7.5 percent in 2019.
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