Volkswagen's second quarter net profit sharply reduced by 50%

On July 31, Volkswagen Group announced its financial data this year. Second quarter operating income and profit growth, but after-tax net profit fell by nearly half year-on-year; revenue rose in the first half of the year, especially the net profit fell more than four percent.

Q2 net profit after tax plunged in the first half of Volkswagen Group's earnings

In the second quarter of 2013, the Volkswagen Group achieved sales revenue of 52.122 billion euros globally, compared with 48.056 billion euros in the same period of last year, an increase of 8.5% year-on-year.

In the second quarter, Volkswagen Group's operating profit (Operating Profit) was 3.436 billion Euros, compared with 3.375 billion Euros in the same period of last year, which was a slight increase of 1.8% year-on-year. The quarter's performance improved from the first quarter, with a sharp drop of 26.0% from the 3.165 billion euros in the first quarter to 2.344 billion euros. The reason for the improvement in the previous quarter was the public’s implementation of cost-cutting strategies and the strong sales of its luxury cars.

However, the public suffered a severe setback in Profit After Tax. In the second quarter, Volkswagen Group's net profit after tax was 2,847 million euros, and after-tax net profit was 5.699 billion euros in the same period last year, a sharp drop of 50.0% year-on-year.

In the first half, profit and net profit fell rapidly

In the first half of the year, Volkswagen Group's revenue reached 98.678 billion euros, an increase of 3.5% compared with 953.78 euros in the same period last year. In the first half of the year, the automotive business sector contributed revenue of 87.515 billion euros, compared with 85.759 billion euros in the same period of last year, an increase of 2.0% year-on-year.

Although Volkswagen's operating profit improved in the second quarter, due to the obvious decline in the first quarter, Volkswagen Group's profit still failed to reverse its year-on-year decline, totaling 5.78 billion Euros, a year-on-year decline on the basis of 6.54 billion Euros in the same period of last year. 11.6%. In the first half of the year, operating margin fell from 6.9% to 5.9%.

In the first half of the year, the automotive business division contributed 4.985 billion euros to the Volkswagen Group's operating profit, compared with 5.81 billion euros in the same period of last year, a decrease of 14.7% year-on-year. The operating margin of the automotive business fell from 6.8% to 5.7%.

Profit Before Tax, Volkswagen Group reached 6.62 billion Euros in the first half of the year, compared with 10.090 billion Euros in the same period of last year, which was a sharp drop of 34.4% year-on-year. The pre-tax profit of the automotive business plummeted 38.6% year-on-year from EUR9.33 billion to EUR5.731 billion.

Similar to the second quarter, net profit after tax fell most significantly. In the first half of the year, Volkswagen Group achieved a net profit after taxation of 4.793 billion euros, compared to 8.847 billion euros in the same period of last year, a year-on-year decrease of 45.8%. The automotive business became a major part of the after-tax net profit margin, which fell from the 8.239 billion euros year-on-year to 50.9 to 4.195 billion euros.

Volkswagen pointed out that the revaluation of the exercise rights (2.6 billion euros) for Porsche shares in 2012 largely affected the pre-tax profits and after-tax net profit values ​​last year, which led to the high base, which caused an alarming decline.

Volkswagen's Business Unit Declined Even More Significant Brand/Business Unit Revenue and Profits

In the first half of the year, the revenue of the Volkswagen Passenger Vehicles Division fell from 52.746 billion euros to 50.367 billion euros, and the profit fell from 2.265 billion euros to 1.494 billion euros.

In the first half of the year, Audi's business unit revenue increased from 25.022 billion euros to 25.244 billion euros, and the profit fell from 2.871 billion euros to 2.644 billion euros.

In the first half of the year, the revenue of the Skoda Business Unit fell from 5.715 billion euros to 4.966 billion euros, and the profit fell from 449 million euros to 243 million euros.

In the first half of the year, the sales of the Seat Business Unit increased from 3.349 billion euros to 3.629 billion euros, and the loss amounted to 4,000 euros from 44 million euros.

In the first half of the year, Bentley's business division's revenue fell from 757 million euros to 690 million euros, and the profit increased from 57 million euros to 58 million euros.

The Porsche Business Unit's revenue for the first half of the year was 7.025 billion Euros, with a profit of 1.294 billion Euros. Porsche was completely acquired by Volkswagen in August of last year and was not included in the public financial statements in the first half of the year.

In the first half of the year, the revenue of the Volkswagen Commercial Vehicles Division increased from 4.848 billion euros to 5.097 billion euros, and the profit increased from 242 million euros to 244 million euros.

In the first half of the year, the Scania Business Unit’s revenue fell from 4.606 billion euros to 50.367 billion euros, and the profit fell from 477 million euros to 464 million euros.

In the first half of the year, Mann’s business division’s revenue fell from 7.81 billion euros to 7.629 billion euros, with a profit of 355 million euros in the first half of last year and a loss of 124 million euros in the first half of the year.

Volkswagen Group's business units maintained growth in production and sales for the first half of the year

In the first half of this year, the global production and sales volume of Volkswagen Group maintained a year-on-year growth.

Volkswagen's most commonly used indicator, Deliveries to Customers, is terminal sales. In the first half of the year, the Volkswagen Group reached 4.798 million units in the world, compared with 4.552 million units in the same period of last year, a year-on-year increase of 5.4%. The 4.7 million data released by the public before this time were light vehicle sales, excluding the sales of two major commercial vehicle subsidiaries, Mann and Scania.

In terms of sales volume, Volkswagen reached a new high of 4.873 million vehicles in the first half of the year, compared with 4.644 million vehicles in the same period of last year, an increase of 4.9% year-on-year. In the first half of the year, the output was 48.86 million units, which represented an increase of 4.4% from the 4.681 million units in the same period of last year.

The following is a summary of the sales volume of each brand.

1. Volkswagen Passenger Cars In June 2013, the Volkswagen passenger car brand delivered 501,000 vehicles worldwide, which was a slight increase of 0.5% year-on-year compared with 498,600 units sold in June last year.

In the first half of the year, the cumulative sales volume of Volkswagen brand was 2,910,800 units, which was 2,785,300 units in the same period of last year, an increase of 4.4% year-on-year.

2. Audi sold 140,300 vehicles globally in June this year. In June 2012, it was 133,049 vehicles, an increase of 5.5% year-on-year.

In the first half of the year, Audi sold a total of 780,500 units, compared with 733,216 units in the same period of last year, an increase of 6.4% year-on-year.

3. Porsche In June 2013, Porsche delivered 14,304 vehicles worldwide, which represented a year-on-year increase of 12.6% on the basis of 12,699 vehicles in 2012. In the first half of the year, Porsche’s global sales volume totaled 81,565 units, compared to 69,171 units in the same period of last year, which represents an increase of 17.9% year-on-year.

4, Skoda In June this year, Skoda sold a total of 87,400 vehicles in the world, compared with the same period last year, a slight increase; the car company in the first half of the global cumulative sales reached 464,600 units, down 5.8% compared with 493,000 units in the same period last year.

5. Bentley Bentley delivered 4,279 vehicles globally in the first half of the year, an increase of 8.9% from the same period last year of 3,929 units.

6. In the first half of the year, the sales volume of SEAT SEAT was 182,100 units, which was a year-on-year increase of 11.5% compared to 163,300 units in the first half of last year.

7. In the first half of the year, the cumulative sales volume of Volkswagen commercial vehicle commercial vehicle brands was 270,700 units, compared with 270,100 units in the same period of last year, a slight increase of 0.2% year-on-year.

8. The Mann Mann Group sold 65,000 vehicles in the first half of the year, compared with 68,000 vehicles in the same period of last year, down 4.4% year-on-year.

9. Scania Scania sold 38,000 vehicles in the first half of the year, compared with 32,000 vehicles in the same period last year, an increase of 18.75% year-on-year.