Semester not satisfactory for the two main car manufacturers world championships, Volkswagen and Toyota. Volkswagen closed the first half of the year with revenues of 158,8 billion euros, up 1,6% compared to the same period of the previous year. However, net profit fell by 13,9% to 7,34 billion euros, while operating profit fell by 11% to 10,1 billion euros. Vehicle sales fell 2,4 percent to 4,34 million units.
On the other hand, Toyota reported first-quarter net profit rising 1,7% to 1,33 trillion yen ($8,9 billion) and kept its full-year forecast unchanged. The group expects annual net profit of 3,57 trillion yen, down 27,8%, and sales of 46 trillion yen, up 2,0%.
Volkswagen closed the first half of the year with revenues of 158,8 billion euros, marking a growth of 1,6% compared to the same period of 2023. However, net profit decreased by 13,9%, falling to 7,34, 11 billion euros, while the operating result recorded a decline of 10,1%, reaching 2,4 billion euros. Vehicle sales fell 4,34 percent to XNUMX million units.
Stock market reactions were negative for both companies: Toyota saw a drop of more than 8% in its shares, while Volkswagen saw a smaller loss of less than 1%.
Volkswagen's results
In the second quarter, Volkswagen has showed signs of recovery with revenues growing by 4,1% to 83,3 billion euros. L'Net income limited the decline to 4,2%, reaching 3,63 billion euros, while the operating result fell by 2,4% to 5,46 billion euros. This improvement was partially attributed to performance programs and new products that received positive feedback from global markets.
La decrease in operating profit was influenced by various non-operational factors, including unplanned provisions for Volkswagen's layoff program, increased fixed costs and charges related to the deconsolidation of VW Bank Russia and the closure of part of MAN Energy Solutions' gas turbine business. To address these challenges, Volkswagen has taken major steps to reduce production capacities in Germany by 25 percent, eliminating night shifts and adapting operations to demographic effects.
“The Volkswagen Group recorded a solid performance in the first half of the year. In a challenging context, the 2024 marks the group's largest product offensive and a complete restructuring of our business areas. The results reflect successful teamwork across all brands,” commented CEO Oliver Blume.
“Performance programs are accelerating across the group – continued Blume – and our new products are receiving positive feedback from global markets. This is a good foundation. However, much work still remains to be done."
Guidance 2024 confirmed
Volkswagen has cThe outlook for 2024 has been confirmed, forecasting revenue growth of up to 5% and an operating margin of 6,5%-7%. Despite the challenges, the company is confident thanks to the positive feedback received for the new products and the solid performance in the second quarter. However, it remains to be seen how Volkswagen will deal with difficulties related to fixed costs and restructuring.
“We will need to make significant cost reduction efforts in the second half of the year and beyond to achieve our goals,” the CFO said in a statement arno antlitz..
I reduce Toyota's sales
Le global sales of the group decreased by 4,2% to 2,64 million units, mainly due to vehicle certification scandals and increased competition in China. However, the yen's devaluation benefited Toyota in overseas markets, boosting operating profit by 370 billion yen.
Le vehicle sales in Japan they fell by 20,8%, while they increased in North America and Europe. In China, registrations fell by 17,6% due to strong competition. Despite global vehicle sales falling 3,2%, Toyota saw operating profit grow 16,7% to 5,308 billion yen thanks to the effect of the weak yen and cost-cutting efforts.
In general, an entire automotive sector is suffering with less than brilliant results even from BMW and Stellantis.
