Scania, MAN help Volkswagen profit jump


First half profits reach €6.6 billion on the back of a 3.5% rise in revenues for Volkswagen Group, helped by its commercial vehicle arms

Scania, MAN help Volkswagen profit jump
Revenue from the sale of Scanias worldwide rose to €6.5 billion in the first six months of 2018, Volkswagen says

 

Strong performance in its MAN, Scania and Commercial Vehicles operations have helped Volkswagen Group to post a 2.1 per cent rise in first half profits to €6.6 billion.

Volkswagen Group sales revenue increased 3.5 per cent to €119.4 billion in the six months to June 30 2018, while earnings before tax rose 2 per cent, to nearly €9 billion.

Scania recorded sales revenue of €6.5 billion, higher than in 2017, while operating profit was also higher at €684 million – as cost increases were offset by higher volumes and a favourable exchange rate trend.

Sales revenue for MAN Commercial Vehicles was also higher, reaching €5.8 billion while operating profit rose to €258 million during the half, while MAN’s power engineering division generated €1.6 billion in sales revenue for an operating result of €68 million.


As ATN reported last month, sales of MAN trucks worldwide rose 24 per cent to 65,400 in the six months to June 2018. Check out our story here


Volkswagen’s Commercial Vehicles arm recorded a 6.7 per cent rise in revenues to €6.3 billion and its operating profit rose by 26.7 per cent to €567 million, due in particular to volume and mix effects, improved price positioning and optimisation regarding the cost of materials.

Volkswagen Group chief executive Herbert Diess says the company had seen "very solid growth" in its sales revenue and earnings over the course of the year, with more vehicles delivered than ever before.

However, growing protectionism in the global automotive industry and the transition to the Worldwide Harmonised Light-Duty Vehicles Test Procedure (WLTP) will represent challenges going forward, he says.

"We cannot rest on our laurels because great challenges lie ahead of us in the coming quarters," Diess says.

"Over the coming months, we will do everything in our power to validate the trust of our customers worldwide. Our stated goal is to transform Volkswagen into our industry’s leading company in terms of profitability, innovative power, sustainability and customer satisfaction."

Customer deliveries in the second half of 2018 are expected to "moderately exceed the prior-year figure," Volkswagen says, with sales revenue expected to be up by as much as five per cent on the 2017 result.

"An operating return on sales before special items of between 6.5 and 7.5 per cent is anticipated for the operating return on sales. After special items, we anticipate that the operating return on sales will fall moderately short of the expected range for the Group," the company says.

 

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