Skoda sees increased sales in first quarter of 2012
Skoda witnessed increased sales, profits and production during the first quarter of this year. Deliveries to customers rose 11.8% while their revenues increased 8.4% to €2.9 billion in the first three months and operating profits grew 11.8% to €209 million. There was a substantial increase in revenues as well. Operating margin rose 7.2% as against 6.9% during the first quarter of the previous year. Skoda delivered 242,700 units to customers thus setting a new delivery record in the first quarter of 2012.
This was rather heartening considering the economic uncertainty across the globe. The first quarter was also encouraging where company investments in fixed assets were concerned. The company increased these fixed assets to € 101 million.
An attractive model lineup is what has contributed to these results. And the brand will be introducing an average of one new vehicle every six months into the markets. If the company figures continue in the same vein they are confident of reaching their targets of selling 1.5 million vehicles a year 2018 onwards.
Press Release: ŠKODA with clear gains in the first quarter of 2012
› Deliveries to customers rise 11.8 percent
› ŠKODA’s revenue increases 8.4 percent to 2.9 billion EUR
› Operating profit grows 11.8 percent to 209 million EUR
› Investments in fixed assets increased to 101 million EUR
› Financial solidity of the car manufacturer strengthens Growth Strategy 2018
In the first quarter of 2012, the Czech automobile manufacturer ŠKODA was able to clearly increase its revenue, earnings and operating margin. Other key figures such as deliveries and production were also running at record levels after the first three months of the year.
ŠKODA’s revenue rose 8.4 percent to 2.9 billion EUR in the first three months of the year (1st quarter of 2011: 2.7 billion EUR). At the same time, the operating profit grew 11.8 percent to 209 million EUR (1st quarter of 2011: 187 million EUR). The increase in the revenue as well as the enhanced cost optimization contributed significantly to the improved operating profit of the car manufacturer. The operating margin of the company rose 7.2 percent (1st quarter of 2011: 6.9 percent). With 242,700 vehicles delivered to customers, the brand also achieved a new delivery record for a first quarter.
“ŠKODA’s growth course is profitable,” emphasized ŠKODA’s chairman of the board, Prof. Dr. h.c. Winfried Vahland. “In the first quarter, we have sold more cars than ever in any previous quarter and were once again able to clearly improve our financial results. That demonstrates the financial solidity of the company,” continued the ŠKODA boss. However, the ŠKODA team would not rest on the positive figures, but would have to prepare the future path for continued profitable growth through a strict cost discipline in 2012. “In times of economic uncertainty, profitability is a necessary prerequisite for the success of our growth strategy,” underscores Vahland.
In the first quarter, ŠKODA also clearly increased the company investments in fixed assets to current 101 million EUR. ŠKODA’s board member for Finances, Winfried Krause, emphasizes: “We continue to invest in new products and capacities. Our expenditures clearly show that we are consistently pursuing our goals and implement them with concrete measures. We have set the right course and will continue to do that. That is how we will be able to realize our goal of selling at least 1.5 million cars per year by 2018.”
In this context, Krause stated that the increase of net liquidity had developed positively as well: “Despite increased investments, we were able to increase our net liquidity to almost 2.1 billion EUR.” This would create the necessary flexibility in times, which are becoming increasingly difficult with regard to the business cycle,” the ŠKODA board member for Finances explained.
The basis for the commercial success in the first quarter of 2012 lies in the attractive model range of ŠKODA. In the coming years, the brand will introduce an average of one new vehicle every six months in the markets.