Volkswagen Group Operating Profit Down €700 Million in First Half

VolkswagenVolkswagenGermany, 1938 > present98 models
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Group has increasing sales but falling profits through the first half of this year. Its operating profit was €5.8 billion, down from €6.5 billion in the first half of 2012. However, unit sales hit 4.8 million cars, up 5.4% from last year. It also grew its global auto market share to 12.7%, up 0.3% from 2012.

The company is suffering from the lack of growth in Europe and slow growth outside of Asia. Many of its brands have falling profits.

Total revenue for the first half of 2013 was €98.7 billion, up €3.3 billion from 2012, but earnings before interest and taxes were down significantly to €6.6 billion, compared to €10.1 billion in 2012. Profit after tax hit €4.8 billion this year, compared to €8.8 billion in 2012.

“We made considerable progress following a subdued start to the year, and can report a solid result in what was a difficult market environment”, said Volkswagen Chairman Dr. Martin Winterkorn.

Volkswagen Cars sold 2.4 million cars in the first half of the year, down 1.7%, and operating profit fell €800 million over 2012 to €1.5 billion.

AudiAudiGermany, 1909 > present83 models
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sold 692,000 cars, up 2.1% over 2012, and it sold a further 197,000 cars through its FAW-Volkswagen Chinese joint venture. Operating profit was down €300 million over 2012 to €2.6 billion. 

SkodaSkodaCzech Rep., 1895 > present57 models
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sold 362,000 cars in the first half, down 11.1%. Operating profit fell significantly to €243 million, compared to €449 million in the first half of 2012

SeatSeatSpain, 1950 > present29 models
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sold 244,000 cars, up 26,000 cars from 2012. It posted an operating loss of €40 million, €2 million lower than in 2012.

BentleyBentleyUnited Kingdom, 1919 > present37 models
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sold 4,200 cars in the first half of the year, down 400 cars from 2012. Operating profit grew €1 million to €58 million. 

PorschePorscheGermany, 1931 > present43 models
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sold 78,000 cars in the first half of the year, compared to 68,940 cars in 2012, and had operating profit of €1.3 billion, up €40 million from last year.

Volkswagen predicts that unit sales will be up over last year, but operating profit will likely be roughly the same as last year.