The Volkswagen Group maintained its profitable growth trajectory in the first half of 2011, extending its leading position in the global market. “Our unique brand diversity and highly attractive products, our leading position in the field of environmentally-friendly technologies, our financial strength and our constantly growing presence in all key areas of the world are key competitive advantages for the Volkswagen Group”, said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, on Thursday at the presentation of the financial report for the first six months of the year.

At 4.1 million (H1 2010: 3.6 million), vehicle deliveries by Europe’s largest automotive group were up 14.3 percent, topping the strong figures for the previous year. Global market share rose from 11.7 percent in the first half of 2010 to 12.4 percent. Sales revenue in the first six months of the current year was up 25.8 percent on the prior-year period, to €77.8 billion (€61.8 billion). Operating profit more than doubled, climbing from €2.8 billion to €6.1 billion. The operating return on sales rose from 4.6 percent to 7.8 percent year-on-year. The consolidated operating profit does not include the Group’s €1.2 billion share of the operating profit from the Chinese joint ventures (€0.8 billion). These companies are included using the equity method and are therefore reflected in the financial result. The measurement as of the reporting date of the put/call options on Porsche Zwischenholding GmbH had a positive effect on the financial result. Profit before tax for the first half of the year amounted to €8.2 billion (€2.6 billion). The figure after tax increased to €6.5 billion (€1.8 billion).

CFO Hans Dieter Pötsch was also satisfied with business developments. “We have recorded a further increase in profitability”, he said. The Volkswagen Group is benefiting from dynamic growth in almost all regions of the world. In addition to higher unit sales, amongst others, lower product costs contributed to the increase in profitability. “In view of the global economic challenges, we are well advised to maintain our cost and investment discipline and to further improve our financial strength”, Pötsch continued.

 
Automotive Division net liquidity (€19.4 billion) demonstrates continued financial strength

Net liquidity in the Automotive Division was up €0.8 billion in the first half of 2011 as against year-end 2010, to €19.4 billion. The Volkswagen Group invested a total of €6.5 billion (€4.5 billion) in the Automotive Division in the period from January to June. This figure already includes the cash outflows in the first half of the year for the acquisition of the trading business of Porsche Holding Salzburg, the increase in the investment in MAN SE, the Munich-based commercial vehicles and diesel engine manufacturer, to 30.47 percent of the voting rights, and the investment in SGL Carbon SE which all together totals €3.3 billion. “Our continuing high liquidity is proof of the Volkswagen Group’s financial strength and stability”, said Pötsch. “At the same time, it gives us the financial flexibility we need for our investments and to implement our Strategy 2018.”

The Volkswagen Group maintained its strict investment discipline in the first half of the year with a ratio of investment in property, plant and equipment to sales revenue of 3.7 percent

(3.5 percent) in the Automotive Division. This figure is expected to remain within the target corridor of up to around 6 percent of sales revenue for the full year. The strong growth in sales revenue meant that the ratio was only slightly higher than in the previous year, despite increased capital expenditure.

Source :- Volkswagen