Volkswagen
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Published 1 year ago

Cars Volkswagen Published by J. Doe

Volkswagen Group measures reduce the effects of Covid-19 in the first half of the year

Percentage gap to prior-year month has been decreasing consistently since May

Until the end of June, the Volkswagen Group reported a sharp year-on-year decline of 27.4 percent in its deliveries to 3.9 (5.4) million vehicles. After deliveries came in at around 45 percent lower in April than the prior-year figure, the gap decreased consistently to around 18 percent in June. Here deliveries in May were around 57 percent lower year-on-year, in June the figure was at 30 percent. Therefore, the Group expects its deliveries in this month to be below the same month of the previous year, albeit only single-digit percentagewise. The markets are expected to continue to recover overall in the second half of the year.

Net liquidity in the Automotive Division rose over the first quarter

The net liquidity in the Automotive Division increased from EUR 17.8 billion at the end of March to EUR 18.7 billion at the end of June. At EUR – 4.8 billion, net cash flow in the Automotive Division was markedly below the previous year’s level of EUR 5.6 billion. Research and development costs in the first half of the year were down 4.8 percent year-on-year at EUR 6.7 (7.0) billion. The ratio of capex to sales revenue in the Automotive Division was significantly reduced by 20.6 percent to EUR 4.1 (5.2) billion.

Positive operating profit still expected for the full year

The Volkswagen Group anticipates that deliveries to customers will be significantly down on the previous year in 2020 due to the impact of the Covid-19 pandemic. The sales revenue of the Volkswagen Group is expected to fall significantly below the previous year’s level in 2020 as a result of the Covid-19 pandemic. Overall, the Volkswagen Group anticipates the operating result for 2020 before and including special items to be severely lower than in previous year; however, in positive territory.

In the Automotive Division, the R&D ratio and ratio of capex to sales revenue will exceed the previous year’s levels in 2020 due to lower demand and therefore considerably declining sales revenues. As a result, net liquidity in the Automotive Division will also fall short of the previous year’s level.

Brands and Business Fields

Sales revenue decreased by 35.3 percent to EUR 28.6 billion. Operating result before special items deteriorated to EUR –1.5 (2.3) billion. The diesel issue gave rise to special items of EUR –0.6 (–0.4) billion in the reporting period.

Sales revenue decreased to EUR 20.5 (28.8) billion. The operating result (current-year figure before special items) was EUR – 643 million (EUR 2.3 billion). The diesel issue resulted in special items of EUR –0.1 billion in the first half of 2020.

Annual General Meeting will take place on September 30, 2020; dividend proposal amended

September 30, 2020 has been set as the new date for the Annual General Meeting for the 2019 fiscal year. To protect the health of shareholders, employees and service providers, this year’s Annual General Meeting will be held on a virtual platform. At the same time as announcing the new date, the Management has also submitted an amended dividend proposal. Given the scale and extent of the impact and the current inability to reliably estimate future developments, the Board of Management and the Supervisory Board have resolved to propose now to the Annual General Meeting a dividend of EUR 4.80 per ordinary share and EUR 4.86 per preferred share. The Company’s Management has thus amended the proposed dividend previously announced for the 2019 fiscal year of EUR 6.50 per ordinary share and EUR 6.56 per preferred share.

Original article

Jul 31, 2020 at 15:12

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