FRANKFURT, Germany — Volkswagen mentioned Friday it made higher than anticipated revenue of 8.8 billion euros ($10.7 billion) after tax in 2020 regardless of the pandemic. The world’s No. 2 automaker mentioned the fast restoration of China, its largest single market, and resilient gross sales of luxurious autos helped the underside line.
The corporate gave an upbeat outlook for this 12 months, saying it could carry momentum from the stronger second half of the 12 months over into earnings going ahead. It predicted earnings can be within the high a part of its forecast vary and that gross sales income can be “considerably increased,” assuming profitable containment of the COVID-19 pandemic.
The outcomes underline the uneven affect of the pandemic. Manufacturing firms like Germany’s three large carmakers — Volkswagen, BMW and Daimler — have seen their gross sales and earnings maintain up higher than these for companies, tourism and air journey firms.
The earnings determine was off 37% from 2019. Gross sales income was down 11.8% at 222.9 billion euros, however fell lower than the 16.4% drop in unit gross sales to 9.2 million autos. That meant Volkswagen surrendered the title of largest carmaker by quantity that it had held since 2016 to Toyota, which offered 9.5 million autos.
Volkswagen widespread shares traded 2.4% increased after the earnings assertion. Extra monetary particulars are to be introduced March 16 on the firm’s annual information convention.
The Wolfsburg-based carmaker mentioned that it had taken vital strategic steps throughout the 12 months to speed up its push into software program and digital applied sciences and companies. It tripled its gross sales of electrical autos to 422,000 forward of stricter European Union limits on emissions of carbon dioxide, the first greenhouse fuel blamed for international warming. The corporate’s manufacturers embody luxurious carmakers Audi and Porsche, the place earnings per automobile are increased than for extra primary transportation.
The group’s earnings had been boosted by the Porsche Taycan, a high-performance four-door sedan that begins at $79,500 for the usual mannequin within the U.S. Gross sales of that mannequin reached 20,000. The Taycan is a part of German carmakers’ efforts to compete with electrical automotive pioneer Tesla, which has eaten into their gross sales of luxurious vehicles.
“The monetary outcomes now obtainable are much better than initially anticipated and present what our firm is able to reaching, particularly in a disaster,” Chief Monetary Officer Frank Witter mentioned in an announcement. “We intend to hold over the sturdy momentum from the considerably higher second half into the present 12 months, and the packages for lowering our mounted prices and in procurement will make us extra strong in the long run.
