Volkswagen Group’s Q3 result down year-on-year due to semiconductor bottlenecks – profitability target for 2021 confirmed

Christoph Oemisch
Christoph Oemisch
Corporate Communications Spokesperson, Finance and Sales
Nicole Mommsen
Nicole Mommsen
Head of Global Communications and Sustainability Volkswagen Group Technology
Volkswagen Group
  • Operating profit before special items in Q3 down 12.1 percent to EUR 2.8 billion compared with the pandemic-related weak prior-year figure, due to supply issues; operating return on sales at 4.9 percent, down from 5.4 percent
  • Volume brand group posts operating losses in Q3, China business disproportionately affected by the semiconductor situation despite strong demand
  • Automotive Division’s adjusted net cash flow in Q3 slightly positive at EUR 33 million and robust at EUR 12.4 billion after nine months
  • Operating profit before special items still solid through September at EUR 14.2 billion due to the strong first half; operating return on sales of 7.6 percent
  • Group confirms profitability target of 6.0 – 7.5 percent for 2021
  • Group CEO Diess: “The results of the third quarter show once again that we must now systematically drive forward the improvement in productivity in the volume sector. We are determined to maintain our strong position against established and new competitors and to vigorously implement the transformation toward climate-neutral, digital mobility with our NEW AUTO strategy.”

Wolfsburg. The global semiconductor bottlenecks particularly impacted on the business performance of the Volkswagen Group in the third quarter. Operating profit before special items came to EUR 2.8 (3.2) billion in the period from July to September, a drop compared with the first two quarters of this year and the pandemic-related weak prior-year period. The operating return on sales before special items declined to 4.9 (5.4) percent in the third quarter. The volume brands were affected most in this period, recording operating losses in spite of having full order books. Owing to the semiconductor shortage, the high level of customer demand in China could also not be met. In the first nine months of the year, the Group’s brands lifted deliveries to customers by 6.9 percent to 7.0 (6.5) million vehicles. Sales revenue saw a more significant increase, rising by 20.0 percent in the same period to EUR 187 (155) billion. Due to the strong first half, operating profit before special items, which stood at EUR 14.2 (2.4) billion after nine months, remained at a solid level and exceeded the pandemic-related weak prior-year figure. The operating return on sales was 7.6 (1.5) percent. The Automotive Division achieved an adjusted net cash flow of EUR 12.4 (4.5) billion by the end of September, thus contributing substantially to the financing of the Group’s transformation. Despite the impact on working capital caused by the semiconductor shortage, adjusted net cash flow for the third quarter was slightly positive at EUR 33 million. Net liquidity in the Automotive Division fell by EUR 9.4 billion compared with the first six months to a still robust level of EUR 25.6 billion. Here, the Navistar transaction completed by July had a perceptible effect of around EUR 6 billion. In addition, a dividend of EUR 2.4 billion was distributed to Volkswagen shareholders in the third quarter. The Volkswagen Group confirmed its outlook for the operating return on sales for full year 2021 of 6.0 to 7.5 percent.

Volkswagen Group’s Q3 result down year-on-year due to semiconductor bottlenecks – profitability tar-get for 2021 confirmed
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