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Volkswagen AG (VKW)

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Friday 27 July, 2007

Volkswagen AG

Interim Results

Volkswagen AG
27 July 2007

Interim Report January-June 2007:

- Volkswagen Group operating profit again significantly up year-on-year
  at EUR 2.8 billion in the first six months of 2007

- At EUR 3.0 billion, consolidated pre-tax profit from continuing
  operations rises by EUR 2.3 billion over previous year's figure, which
  was reduced by special items

- Group sales revenue of EUR 54.9 billion exceeds prior-year figure by
  5.7 percent, primarily due to higher volume

- Ratio of investments in property, plant and equipment (capex) to sales
  revenue in the Automotive Division at 3.3 percent in first six months
  of 2007 (previous year: 2.9 percent); cash flows from operating
  activities improve to EUR 8.0 billion (previous year: EUR 6.3 billion)

- Net liquidity in the Automotive Division further increased to
  EUR 11.8 billion

- Group models successful:
  - Deliveries to customers worldwide up by 7.8 percent year-on-year to
    3.1 million vehicles; market share in Germany and Western Europe
    further increased

  - Sales of Volkswagen Passenger Cars, Audi, Skoda and Volkswagen
    Commercial Vehicles significantly up over the previous year, SEAT
    stable at prior-year level

  - Continued high demand in China, South America, Central and Eastern
    Europe

  - Upgraded Phaeton and new Skoda Praktik unveiled; new Magotan to be
    launched in China in the second half

  - Golf Variant gets off to successful start with a large number of
    advance orders

  - Demand for Polo BlueMotion and Passat BlueMotion considerably higher
    than expected

  - Audi A5 and Audi S5 meet very positive reception in the European
    market


- Acceptance period for the takeover bid by Dr. Ing. h.c. F. Porsche AG
  to Volkswagen AG shareholders closed on May 29, 2007



-------------------------------------------------------------------------
January-June                                         2007  2006*) +/- (%)
-------------------------------------------------------------------------
Volkswagen Group:

Deliveries to customers               '000 units    3,086   2,864  +  7.8
Vehicle sales                         '000 units    3,089   2,866  +  7.8
Production                            '000 units    3,134   2,890  +  8.4
Employees                        June 30/Dec. 31  322,576 324,875  -  0.7


Continuing operations:
  Sales revenue                      EUR million   54,852  51,892  +  5.7

  Operating profit
    before special items             EUR million    2,820   1,952  + 44.5
  Special items                      EUR million        -    -995       x
  Operating profit
    after special items              EUR million    2,820     957       x

  Profit before tax from
    continuing operations            EUR million    3,013     751       x
  Profit from continuing operations  EUR million    1,959     390       x

Profit from discontinued
  operations**)                      EUR million        -     796       x
Profit after tax                     EUR million    1,959   1,186  + 65.2


Automotive Division (including allocation of consolidation adjustments
between the Automotive and Financial Services divisions):

Cash flows from operating activities EUR million    8,033   6,291  + 27.7
Cash flows from investing
  activities***)                     EUR million    2,615     598       x
Net liquidity at June 30             EUR million   11,787   6,365  + 85.2
-------------------------------------------------------------------------

*)   Restated
**)  Net gain on disposal of the Europcar group and the Europcar's
     current profit after tax for January to May 2006.
***) Excluding acquisition and disposal of equity investments:
     EUR 2,127 million (EUR 2,113 million).



The key automotive markets continued to record a mixed performance in the
first half of 2007. Growth rates for global automotive demand remained on
a level with the previous year. As the year progresses, we are
forecasting continued high energy and commodity prices that will have a
dampening effect on market growth.

Nevertheless, we expect that global new registrations for full-year 2007
will slightly exceed the previous year. Overall, we expect demand growth
in Europe to slow somewhat, while in Western Europe a decline in the
number of new registrations still cannot be ruled out in Germany and
Spain. The North American markets are also likely to record lower new
registration figures year-on-year. We believe that the markets in China
and South America will be the key drivers of global automotive demand,
posting high growth rates.

We will continue to expand our product portfolio this year by launching a
large number of attractive new models, thus extending our good
competitive position. We are forecasting increased sales figures in
nearly all key automotive markets, especially in the Asia-Pacific, South
America, Central and Eastern Europe regions. We therefore expect to sell
more than six million vehicles for the first time in 2007, and to
significantly exceed the previous year's deliveries.

We expect the Volkswagen Group's 2007 sales revenue to exceed the
previous year's figure. The increase in unit sales and the continuous
optimization of cost structures will lead to a sustainable improvement in
competitiveness and our earnings power.

We are therefore forecasting that the Volkswagen Group's 2007 operating
profit will significantly exceed the previous year's operating profit
before special items, and that we will generate a profit before tax of at
least EUR 5.1 billion. This will enable us to achieve one year earlier
the goal we originally set for 2008.

Wolfsburg, July 27, 2007

Volkswagen AG - The Board of Management


(The full interim report is available at
'http://www.volkswagenag.com/ir'.)


This report contains forward-looking statements on the business
development of the Volkswagen Group. These statements are based on
assumptions relating to the development of the economies of individual
countries, and in particular of the automotive industry, which we have
made on the basis of the information available to us and which we
consider to be realistic at the time of going to press. The estimates
given entail a degree of risk, and the actual developments may differ
from those forecast.

Consequently, any unexpected fall in demand or economic stagnation in our
key sales markets, such as Western Europe (and especially Germany) or in
the USA, Brazil, or China, will have a corresponding impact on the
development of our business. The same applies in the event of a
significant shift in current exchange rates relative to the US dollar,
sterling, yen, Brazilian real, Chinese renminbi and Czech koruna.



                      This information is provided by RNS
            The company news service from the London Stock Exchange