It is a very good time to be in the luxury auto organization. In Volkswagen Group’;s financial report for the 2013 fiscal year, it is unveiled that that Porsche appreciated an working margin of 18 percent. That indicates the Stuttgart brand created on typical about $ 23,200 per car offered, according to BusinessWeek. Bentley was not far behind, and Audi (which was combined with Lamborghini) posted a 10.one % margin. This compares to only around 2.9 percent for the Volkswagen brand.
“Luxury manufacturers are on fire,” mentioned Dave Sullivan, an industry analyst at AutoPacific. He mentioned that the regular revenue margin is among 6 and 8 percent. Manufacturers like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers hunting at a single their automobiles have fewer versions to store against and do not care as much about price. They can also charge more for options, which additional boosts earnings, according to BusinessWeek.
In a way, we should be far more impressed by the continued success from Audi. Its versions normally have direct competitors in every segment from the other premium automakers. Plus, their customers are not the captains of business who are buying for a Bentley. Nevertheless, the 4 Rings is leading rivals in product sales so far this year.
Don’;t assume premium auto income to get started falling anytime soon. The world economy is slowly improving. “As developing nations develop and people start new organizations there is a expanding demand for standing,” stated Sullivan. VW Group isn’;t stagnating both. It announced plans in the report for 100 new designs by the end of up coming 12 months, like larger-end entries like the Audi A4, Q7, Porsche Macan and plug-in hybrid Cayenne. It obviously knows which autos are retaining the lights on.
CEO Winterkorn: “There is a good chance that we will presently exceed the 10 million deliveries mark this 12 months.”
Healthier start off to 2014 with a 4.6 % increase in deliveries in the very first 2 months
Even stronger focus on qualitative growth going forward
The Volkswagen Group met and even beat its targets for 2013 regardless of the challenging aggressive setting. “2013 was an extremely tough yr for European automakers in particular. We weren’;t assisted both by our property marketplace or by exchange charges. Nonetheless, the Volkswagen Group place up a sturdy displaying regardless of the challenging situations”, mentioned Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, for the duration of the presentation of the company’;s 2013 economic benefits in Berlin on Thursday. Winterkorn announced that the Group will now emphasis even a lot more strongly on qualitative growth, with a distinct emphasis on earnings high quality, quality in development and men and women quality.
According to Winterkorn, the Group presently holds the important to sustainably strengthening its earnings good quality in its hands in the shape of its modular toolkits. Rolling out the toolkit approach across the Group in the coming years would be a special achievement in the automotive market. “As volumes grow and new versions are additional, we will also see increasingly positive earnings results”, he said.
In excess of EUR 10 billion spent on study and growth
With respect to high quality in development, Winterkorn announced ideas to rev up the innovation engine even greater. The Volkswagen Group invested over EUR 10 billion on investigation and development last yr – more than any other manufacturer in the planet. Enhancing individuals quality signifies in distinct growing information transfer. Winterkorn believes that the Volkswagen Group’;s greatest asset is the information of its approximately 570,000 employees – and that this need to be safeguarded and constructed on. At the exact same time, the Volkswagen Group will obtain new understanding through its cooperation with around 280 universities and analysis institutes globally. “Sharing information prospects to new knowledge. This allows us to secure our technology leadership and company accomplishment in the future as properly”, said Winterkorn.
CFO Hans Dieter Pötsch was also pleased with 2013. “The Volkswagen Group continued its achievement story and further strengthened its market place thanks to its high profitability”, explained Pötsch. “Given the ongoing issues from the macroeconomic atmosphere, we will continue to pursue our disciplined technique to expense and investment management and steadily improve existing processes. This supplies a basis from which we can increase efficiently in what stays a highly aggressive surroundings.”
Group figures for 2013
The Volkswagen Group’;s revenue income elevated by 2.2 percent to EUR 197. billion in fiscal yr 2013 (prior year: EUR 192.7 billion). The Group’;s working profit rose slightly to a record EUR 11.6 billion (EUR 11.5 billion). Deliveries grew by 4.9 % last 12 months to more than 9.6 million autos (9.3 million).
The Group’;s delivery figures include all cars produced and sold by its Chinese joint ventures, which exceeded 3 million units for the first time final 12 months.
By contrast, the Group’;s revenue income and working revenue do not include the Chinese joint ventures. Their organizations have constantly been accounted for in the financial end result utilizing the equity approach and are as a result not incorporated in consolidated operating profit.
The proportionate share of their working revenue rose to approximately EUR 4.3 billion (EUR 3.6 billion) in 2013. If this figure had been included, the Group’;s profit per motor vehicle delivered would have been significantly higher.
The financial end result declined to EUR .8 billion (EUR 14. billion) last yr. It must be noted that the 2012 figure was positively impacted by measurement results in connection with the integration of Porsche (EUR twelve.3 billion). Total, the Volkswagen Group’;s revenue prior to tax was roughly EUR twelve.4 billion final 12 months (EUR 25.5 billion). Measurement results in connection with the integration of Porsche also had a good effect on revenue just before tax in 2012. The Group’;s revenue soon after tax was EUR 9.1 billion (EUR 21.9 billion).
In light of the company’;s continued achievement, the Board of Management and the Supervisory Board will be proposing to the Yearly Basic Meeting on May 13, 2014 to improve the dividend to EUR 4.00 (EUR 3.50) per ordinary share and EUR 4.06 (EUR 3.56) per preferred share.
The return on investment for the Automotive Division was 14.5 %, effectively above the minimum essential rate of return of 9 %. The return on equity prior to tax in the Financial Solutions Division rose somewhat to 14.3 percent (13.one percent). “In order to safeguard the high quality of our earnings for the extended term, we will raise our profile in all essential markets, leverage our unique brand portfolio, increase our appealing item selection, drive forward technical innovations and provide our consumers a wide range of monetary providers offerings”, said Pötsch.
Net liquidity in the Automotive Division remained sound at EUR sixteen.9 billion as of the end of December 2013 (12 months-finish 2012: EUR 8.6 billion) thanks to the robust enterprise model and net income flow of EUR 4.4 billion. This gives the Group the necessary financial stability and versatility to be capable to maintain its rewarding growth and to continue systematically implementing its Strategy 2018.
The ratio of investments in residence, plant and tools (capex) to sales income rose somewhat by .4 percentage factors to 6.3 %. Volkswagen consequently stays at a competitive degree inside its target corridor of 6 to 7 %. Alongside its manufacturing amenities, Volkswagen invested primarily in the expansion and ecological emphasis of its model assortment, the use of electrical drives and the modular toolkits.
Manufacturers and company fields
The Volkswagen Passenger Autos brand generated sales income of EUR 99.4 billion (EUR 103.9 billion) in 2013, falling quick of the prior-year figure by 4.4 percent due to exchange fee and volume-associated aspects. Reduce unit product sales and upfront expenditures for new technologies in particular affected working profit, which amounted to EUR 2.9 billion (EUR 3.6 billion). It ought to be noted that the figures for income revenue, working profit and unit product sales do not include the Chinese joint ventures.
At EUR 49.9 billion (EUR 48.8 billion), Audi’;s income income exceeded the prior-yr figure by 2.3 percent regardless of unfavorable currency results. Its working profit amounted to EUR 5. billion (EUR 5.4 billion). This decline is largely attributable to upfront expenditures for new goods and technologies, charges linked with the systematic expansion of the international production ne2rk and the demanding atmosphere in many markets. The brand created an working return on revenue of 8.1 % (eleven. %).
ŠKODA recorded product sales income of EUR 10.3 billion (EUR 10.4 billion) in 2013. Unfavorable volume, mix and exchange charge effects had been the reasons behind the decline in working profit to EUR 522 million (EUR 712 million).
SEAT recorded sales revenue of EUR 6.9 billion (EUR 6.5 billion) in 2013. Its working end result improved by EUR 4 million to EUR –152 million.
Bentley created revenue revenue of EUR 1.7 billion (EUR one.5 billion) in between January and December 2013. Bentley’;s working profit rose by 66.9 percent to EUR 168 million due to higher volumes and constructive exchange fee and combine results.
Porsche recorded sales revenue of EUR 14.3 billion in 2013. Its working profit amounted to EUR 2.6 billion, although the operating return on revenue was 18. percent.
Income revenue created by Volkswagen Business Autos reached the prior-yr degree in 2013 at EUR 9.4 billion (EUR 9.5 billion). Its operating profit rose by 6.4 percent to EUR 448 million (EUR 421 million) as a outcome of effective cost optimization measures.
Scania recorded revenue revenue of EUR 8.4 billion (EUR 9.3 billion). Its working revenue improved from EUR 930 million to EUR 974 million. Man created sales income of EUR 15.9 billion (EUR 16. billion) and recorded an operating revenue of EUR 319 million (EUR 813 million), which was largely impacted in the Power Engineering spot by lower volumes, tougher competitive stress, declining revenue from the license organization and in specific by the recognition of project-distinct contingency reserves.
Volkswagen Monetary Providers created an operating profit of EUR one.6 billion (EUR 1.4 billion) in 2013. The division signed 4.3 million new financing, leasing and services/insurance coverage contracts around the world (up 13.4 percent).
Winterkorn: “The Volkswagen Group has never been happy with just achieving the minimum.”
The Volkswagen Group created a wholesome commence to 2014. In the first 2 months, some 1.5 million (1.4 million) passenger automobiles and light industrial cars (excluding Guy and Scania) were delivered worldwide, a year-on-yr improve of 4.7 %. “There is a excellent likelihood that we will presently exceed the 10 million deliveries mark this year – 4 many years earlier than initially planned”, explained CEO Winterkorn, referring to the forthcoming merchandise initiative.
This year and next 12 months, the Volkswagen Group manufacturers will be launching far more than 25 new models, successors and solution enhancements. This will contain such key versions as the new Passat, the Audi A4 and Audi Q7, the Porsche Macan and the plug-in hybrid edition of the Porsche Cayenne, the new ŠKODA Fabia and ŠKODA Excellent, and the SEAT Ibiza.
Despite the persistently tough marketplace atmosphere, Winterkorn was guardedly confident about enterprise improvement in the rest of 2014. “We are expecting a moderate enhance in deliveries”, he mentioned. Problems for the Volkswagen Group will come from the hard market setting and fierce competition, as nicely as interest charge and exchange rate volatility and fluctuations in raw components charges.
The modular toolkit method, which is getting continuously expanded, will have an increasingly positive effect on the Group’;s expense framework. Depending on the financial problems, the world’;s second-largest automaker expects 2014 sales income for the Volkswagen Group and its enterprise regions to move within a variety of 3 percent around the prior-12 months figure.
In terms of the Group’;s operating profit, Volkswagen is expecting an operating return on product sales of between 5.5 percent and 6.5 % in 2014 in light of the tough economic environment, and the same selection for the Passenger Autos Company Spot. The Business Autos/Electrical power Engineering Company Spot is most likely to moderately exceed the 2013 figure. Volkswagen expects the operating return on income in the Monetary Providers Division to be between 7 percent and 9. %. “The Volkswagen Group has never ever been satisfied with just reaching the minimal”, mentioned Winterkorn. Disciplined expense and investment management and the constant optimization of its processes remain integral factors of the Volkswagen Group’;s Technique 2018.
Further details on the Yearly Media Conference and Investor Conference can be accessed at www.volkswagenag.com/ir.