Vw Group expects 2013 operating profit to match the level reached last year

Article by Christian A., on February 26, 2013

Volkswagen Group made a prediction that its operating profit for 2013 will match the level reached last year as the declining European auto market makes an impact on earnings. VW released a statement to say that it aims to achieve earnings before interest and taxes in 2013 on the same earnings level as the 11.5 billion euros ($15.2 billion) attained the past year.

Volkswagen Group is confident that it will outperform the market as whole despite the challenges it faces. But then, it recognizes that it isn’t totally protected from the heavy rivalry in this business. VW is depending on the growth in China and the U.S., together with gains in the luxury-car segment with the Audi brand, to contribute in the offsetting of the weakening European demand.

Its rivals have reported losses during this recession. January’s car registrations were the lowest for the first month of the year since 1990, after experiencing a decline to a 17-year low for the entire 2012, according to auto-industry association ACEA.

VW expects that sales revenue and auto deliveries will continue to increase this year. Revenue in 2012 increased by 21% to 193 billion euros as group worldwide deliveries, which Porsche, Skoda and Seat, increased by 11% to a record 9.07 million cars, sport-utility vehicles and vans.

Before the figures were disclosed, Frank Biller, an analyst at LBBW, said that Volkswagen’s operating results will increase further this year; however, the growth rate will be lower as the industrywide European car sales continue to fall.

VW will benefit from Audi sales in China, where the demand for premium vehicles has stayed strong. VW’s prediction has been scaled back from a year-old forecast made in its annual report for an increase in operating profit for 2013.

Topics: vw, profit

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries