BERLIN/LONDON/FRANKFURT — Volkswagen reported on Friday that its 2020 revenue virtually halved because of the impression of the pandemic, however a rebound in premium automotive gross sales in China and stronger deliveries within the fourth quarter helped hold the world’s largest carmaker within the black.
The group stated full-year working revenue, excluding prices associated to its diesel emissions scandal, got here in at 10 billion euros ($12.2 billion), in contrast with 19.3 billion in 2019.
Analysts had anticipated a full-year 2020 working revenue of 4.8 billion euros, in accordance with Refinitiv Eikon information.
Internet money stream at its automotive division was round 6 billion euros and automotive deliveries picked up in the direction of the top of the 12 months, the German group stated in a press release.
“The deliveries to prospects of the Volkswagen Group continued to get better strongly within the fourth quarter and even exceeded the deliveries of the third quarter 2020,” it stated.
The total-year efficiency caps a turbulent 2020 for Volkswagen and the auto trade. A pandemic-fueled gross sales stoop result in a loss within the second quarter earlier than Volkswagen swung again to profitability within the third quarter on the again of hovering demand for luxurious autos in China, the world’s largest automotive market.
Volkswagen’s shares hit their highest degree in 11 months after Friday’s earnings launch. They have been up 2.7% at 166.4 euros in early afternoon buying and selling.
High shareholder Porsche Automobil Holding SE, which holds 31.4% of Volkswagen and 53.1% of the group’s voting rights, stated it might seemingly submit a considerably constructive revenue after taxes for 2020 in consequence.
“The magnitude of the beat is welcome and supportive of upcoming full-year outcomes throughout the trade,” analysts at Jefferies wrote.
Gross sales at Volkswagen rose 1.7% in December, at a time when new automotive registrations in Europe dropped almost 4%, information from the European Vehicle Producers’ Affiliation confirmed.
Volkswagen and its rivals nonetheless face challenges because of the coronavirus pandemic, together with a world scarcity of chips wanted for manufacturing and ongoing shutdowns in varied markets to fight the outbreak, which means 2021 will likely be one other powerful 12 months.
The carmaker additionally faces powerful competitors in creating electrified and self-driving vehicles. The merger of Fiat Chrysler and Peugeot-owner PSA to create the world’s fourth-biggest automaker Stellantis provides to the strain.
Volkswagen stated on Thursday it narrowly missed EU targets on carbon dioxide (CO2) emissions from its passenger automotive fleet final 12 months and faces a fantastic of greater than 100 million euros ($110 million).
The group is predicted to launch detailed 2020 figures on March 16.
