VW gears up profit surge on drive into emerging markets
Volkswagen, the biggest European carmaker, reported a profits leap, taking the stock market by surprise.
By Agencies |
FRANKFURT: Volkswagen, the biggest European carmaker, reported a profits leap on Wednesday, taking the stock market by surprise.
The group posted a 31-per cent gain in first-half net profit on strong sales in emerging markets, pushing its share price above 200 euros for the first time.
"This shows that we are on the right path," a statement quoted VW chairman Martin Winterkorn as saying.
VW's net profit jumped to 2.572 billion euros (4.0 billion dollars) on a 3.0-per cent rise in sales to 56.5 billion euros.
The group stood by its 2008 growth targets for both sales and operating profit.
In the second quarter, VW's net profit surged to 1.643 billion euros, a gain of 35 per cent from the same period a year earlier.
Second quarter sales gained 4.5 per cent to 29.5 billion euros, with both figures exceeding analysts forecasts.
Most of the company's brands are to launch new models this year, and a VW statement said the group expected deliveries to surpass records set in 2007.
"The Asia-Pacific, Central and Eastern Europe and South America regions will record the highest growth in demand for group vehicles," it said.
Volkswagen owns the VW, Audi, Seat, Skoda, Lamborghini, Bugatti auto brands and also Volkswagen Commercial Vehicles.
VW also now holds 68.8 percent of the voting rights in the Swedish heavy truck maker Scania, the group said.
Scania would be consolidated into the parent group's results in the second half and was expected to add a small contribution to overall profits.
It sold more than a half million units in China for the first time, and has weathered problems facing the auto sector in general and rivals like Renault or Toyota in particular.
The operating environment was tougher "and is demanding considerable efforts from the automotive industry," Winterkorn acknowledged.
VW shares jumped by 3.94 per cent to 203.75 euros in midday trades on the Frankfurt stock exchange while the Dax index of leading shares was 1.08 per cent higher overall.
It was the first time in VW's history that its shares traded for more than 200 euros.
The group posted a 31-per cent gain in first-half net profit on strong sales in emerging markets, pushing its share price above 200 euros for the first time.
"This shows that we are on the right path," a statement quoted VW chairman Martin Winterkorn as saying.
VW's net profit jumped to 2.572 billion euros (4.0 billion dollars) on a 3.0-per cent rise in sales to 56.5 billion euros.
The group stood by its 2008 growth targets for both sales and operating profit.
In the second quarter, VW's net profit surged to 1.643 billion euros, a gain of 35 per cent from the same period a year earlier.
Second quarter sales gained 4.5 per cent to 29.5 billion euros, with both figures exceeding analysts forecasts.
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"Volkswagen's successful model rollout, leaner processes and disciplined cost management are enabling us to grow profitably," said financial director Hans Dieter Poetsch. Most of the company's brands are to launch new models this year, and a VW statement said the group expected deliveries to surpass records set in 2007.
"The Asia-Pacific, Central and Eastern Europe and South America regions will record the highest growth in demand for group vehicles," it said.
Volkswagen owns the VW, Audi, Seat, Skoda, Lamborghini, Bugatti auto brands and also Volkswagen Commercial Vehicles.
VW also now holds 68.8 percent of the voting rights in the Swedish heavy truck maker Scania, the group said.
Scania would be consolidated into the parent group's results in the second half and was expected to add a small contribution to overall profits.
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VW had already announced a new sales record in the first half of the year, at 3.27 million vehicles, owing to strong results in several emerging markets.It sold more than a half million units in China for the first time, and has weathered problems facing the auto sector in general and rivals like Renault or Toyota in particular.
The operating environment was tougher "and is demanding considerable efforts from the automotive industry," Winterkorn acknowledged.
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VW shares jumped by 3.94 per cent to 203.75 euros in midday trades on the Frankfurt stock exchange while the Dax index of leading shares was 1.08 per cent higher overall.
It was the first time in VW's history that its shares traded for more than 200 euros.
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