October 31, 2020

Volkswagen Group stagnates operating profit at 13,800 million | Economy

Volkswagen Group stagnates operating profit at 13,800 million | Economy



The German Volkswagen consortium closed last year with an operating profit of 13,900 million euros, an increase of 0.7% compared to the 13,800 million euros accounted for in 2017, according to data advanced by the company. The company led by Herbert Diess explained that its operating result suffered an impact of 3,200 million euros over the past year in relation to the problem of software that altered the emissions of some diesel vehicles of the corporation.

The operating profit before extraordinary effects was 17,100 million euros, 0.5% better than the 17,000 million euros recorded in the previous year. During the whole of last year, Volkswagen accounted for a turnover of 235,800 million euros, representing a progression of 2.7% compared to the revenue recorded the previous year.

In 2018, the German multinational achieved an operating margin of 7.3%, compared to 7.4% in 2017, a figure that, according to the company, is in the "high" part of the target set for 2018. In addition, liquidity net of the automotive division reached 19,400 million euros, down 13%.

Given these advanced results (the final will be known on March 12), the president of the Volkswagen group, Herbert Diess, described as "decent" the evolution of the company during the past year, mainly in the context of the entry into force of the WLTP cycle, which caused "a great upheaval" in the performance of the company's sales.

Thus, he indicated that his estimates contemplate that the "winds against" increase in key markets during this year and stressed that the offensive of electromobility that is carrying out the corporation will be reinforced with the arrival of new models.

"In general, however, we will have to redouble our efforts to meet our ambitious goals in the new fiscal year," added the manager of the German multinational, which registered 10.8 million vehicles worldwide last year, a 0 , 9% more.

For the year that has just begun, Volkswagen expects to experience a "slight" increase in sales compared to the previous year, despite the fact that the difficult market conditions will continue, mainly due to the economic situation, the increase in competition, volatility of the currency exchange rate and the demands of the WLTP.

In terms of revenues, the company expects a maximum growth of 5% compared to 2018, while the operating margin will be between 6.5% and 7.5%. In addition, it is estimated that the costs linked to the "diesel problem" will impact "negatively" on cash flow also in 2019, although to a lesser extent than in the previous year.

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