Bentley
- Volkswagen’s stock jumped 5% on Thursday after the company stood by its vehicle delivery, revenue, and profit forecasts for 2019 despite facing numerous challenges.
- The German carmaker expects to slightly exceed the 10.8 million deliveries it made in 2018, grow sales by as much as 5%, and post operating profits equal to 6.5% to 7.5% of revenue.
- Sales and profits rose across its VW, Škoda, Seat, and commercial vehicle divisions. Bentley also turned a profit due to strong revenue growth.
- Audi and Porsche boh reported lower sales and operating profits.
Volkswagen’s shares climbed about 5% on Thursday after the company stood by its annual delivery, revenue, and profit forecasts in a challenging global auto market.
The German carmaker expects to slightly exceed the 10.8 million vehicle deliveries it made in 2018, according to its first-quarter earnings report. It also predicts sales will rise by as much as 5% this year, and operating profits will equal 6.5% to 7.5% of sales — a significant increase from 5.9% in 2018, according to the group’s annual report.
Volkswagen’s confirmed forecasts were a surprise in the face of an industry slowdown, further costs tied to its diesel-emissions scandal, and lower profits across its Audi, Škoda, and Porsche brands in the first three months of 2019. The auto giant’s revenue rose by about 3% to 60 billion euros, but operating profit slid 7%, reflecting a provision of 1 billion euros for legal costs.
Sales and adjusted operating profits in the core VW division grew by 7% and 5% respectively, as higher prices and cost reductions offset lower sales volumes and exchange-rate impacts. Bentley sales surged 30%, swinging the division into profit, driven by strong sales of the new Bentley Continental GT. Revenues from Škoda, Seat, and commercial vehicles also increased.
Audi’s sales and operating profits both slumped by more than a tenth as higher costs and exchange-rate impacts took a toll. Porsche sales fell 4%, pushing the brand’s operating profit down 12%, as volumes fell due to lower demand and production issues. Škoda’s profits also shrunk due to higher costs and exchange-rate impacts.
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Source: Business Insider – tmohamed@businessinsider.com (Theron Mohamed)