WOLFSBURG (dpa-AFX) - Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE), a German auto-major, on Wednesday recorded a decline in earnings for the 9-month period, mainly due to significant restructuring expenses and challenging market conditions.
Arno Antlitz, CFO and COO of Volkswagen Group, said: 'Our nine-month results reflect a challenging market environment and underline the importance of delivering on the performance programs we have launched across the Group. Volkswagen Brand reported an operating margin of only two percent after nine months. This highlights the urgent need for significant cost reductions and efficiency gains.'
For the period to September 30, the Group posted a profit of 8.917 billion euros, lower than 12.868 billion euros, posted for the same period last year.
Earnings before tax stood at 12.523 billion euros as against previous year's 17.700 billion euros.
Operating result slipped to 12.907 billion euros from last year's 16.241 billion euros. This was impacted by Brand Group core performance and significant restructuring expenses of 2.2 billion euros, mainly at Brand Group Core and Brand Group Progressive as well as higher fixed costs and expenses for the introduction of new products.
Vehicle sales were 6.463 million units, compared with 6.762 million units in 2023.
Sales at Progressive brand group business stood at 0.800 million vehicles as against last year's 0.945 million vehicles. Core brand group business sold 3.627 million units, up from previous year's 3.575 units.
Sales revenue, however, improved to 237.279 billion euros from 235.102 billion euros a year ago.
Core brand group generated sales revenue of 101.523 billion euros, compared with 101.060 billion euros, while at Progressive brand group, it was 46.262 billion euros, lesser than 50.390 billion euros in 2023.
Looking ahead, for the full year, the Group continues to expect sales revenue of around 320 billion euros, which is lower than last year's 322.3 billion euros.
Annual deliveries to customers are still projected to be around 9 million vehicles, down from prior year's 9.24 million vehicles.
In terms of operating result, the company expects to achieve around 18 billion euros, corresponding to an operating return on sales of around 5.6 percent.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
