ŠKODA AUTO achieves €821 million operating profit

02/08/2018
ŠKODA AUTO remains on the course for success in the first half of 2018. The carmaker increased sales revenue by 5.1% to € 9.161 billion, for the first time surpassing the €9 billion mark in the first six months of the year. Operating profit of 821 million euros remains at a high level. Deliveries to customers increased by 11.6% from January to June this year to a new record of 652,700 vehicles.

Mladá Boleslav, 2 August 2018: Bernhard Maier, ŠKODA AUTO CEO: “The results of the first half of the year demonstrate that we are on the right path with Strategy 2025. The current product range has been very well received by our customers. Our model campaign continues in the second half of the year with the launch of the new FABIA and KODIAQ RS. Converting our vehicles to the new WLTP cycle remains a challenge.”

ŠKODA AUTO’s sales revenue increased by 5.1% to 9.161 billion euros between January and June 2018 (first half of 2017: 8.720 billion euros). In the same period, operating profit fell by 4.5% to 821 million euros (first half of 2017: 860 million euros). Return on sales reached 9.0% compared to 9.9% in the first six months of 2017. Net cash flow totalled 980 million euros (first half of 2017: 1,152 million euros).

"ŠKODA AUTO continues to show stable profitability and yield security in the first half of the year. Important factors influencing this are our active mix management within the framework of the positive sales volume development and our consistent cost management," says SKODA AUTO Board Member for Finance and IT Klaus-Dieter Schürmann, adding: "Stricter emission and CO2 regulations place growing demands on the entire automotive industry. The necessary expenditures for future technologies and new products, as well as negative exchange-rate effects and rising personnel costs due to the new wage agreement, which came into force in April, are increasingly reflected in the result."

ŠKODA AUTO continues to pursue its ambitious Strategy 2025. By the end of 2020, the Czech automobile manufacturer will have introduced 19 new vehicle models and made considerable investments in pioneering technologies such as electromobility and digital services. Added to this is the brand’s expansion into emerging markets such as India, where ŠKODA now holds responsibility for the Volkswagen Group’s market and model campaign.

ŠKODA AUTO Group – Key figures for the first half of 2018/2017*

Units 20182017Change in %
Deliveries to customers No. of cars 652,700 585,000 11.6
Deliveries to customers excluding China No. of cars 487,200 451,000 8.0
Production**
No. of cars 486,200 464,900 4.6
Sales*** No. of cars 510,700 500,500 2.0
Sales revenue Million EUR 9,161 8,720 5.1
Operating profit Million EUR 821 860 -4.5
Return on Sales Percent 9.0 9.9 -
Net Cash Flow Million EUR 980 1,159 -15.4

 

* Percentage deviations are calculated from non-rounded figures

** Comprises the production of the ŠKODA brand, excluding production in China, Slovakia, Russia and India, but including other Group brands such as SEAT, Audi and VW; vehicle production excluding part/complete kits

*** Comprises sales of the ŠKODA brand to sales companies and includes other Group brands, such as SEAT, Audi and VW; vehicle sales excluding part/complete kits

A week ahead of its world premiere in Tel Aviv, ŠKODA has released the first official photos of the interior of the SCALA. The Czech brand’s new interior concept follows the overall direction set by the ŠKODA VISION RS concept car which was revealed at the Paris Motorshow in October. The SCALA will be the first ŠKODA production model to feature this emotive design language, blending ergonomics and emotional appeal. Key elements include a central display positioned high up in the driver’s field of vision and a redesigned instrument panel.
​​​ŠKODA’s remarkable trophy-winning streak shows no sign of ending with no fewer than three models taking top honours at the 2019 Carbuyer Awards. The Citigo, Octavia and Superb were all recognised as the best in their respective sectors as ŠKODA cleaned up in some of the new car market’s biggest and most competitive segments. All three ŠKODA models were also repeat winners, retaining their titles from last year’s awards.
Scala Interior
A design sketch provides a first glimpse of the interior of the new ŠKODA SCALA. The new compact model will be the first ŠKODA to feature the latest infotainment generation with a free-standing display positioned high up, in the driver’s immediate field of vision. The optional Virtual Cockpit has the biggest display in its class. In addition to new interior trims and premium materials the SCALA also offers a generous amount of interior space, along with the largest luggage compartment in this segment, at 467 litres.
Scala
Following on from the first silhouette images, ŠKODA reveals the name of its new model – the ŠKODA SCALA. The name derives from the Latin word ‘SCALA’ which means ‘stairs’ and is a step forward for the Czech car manufacturer in the compact hatch segment. The SCALA is the first ŠKODA production model in Europe to carry the ŠKODA name in lettering across the centre of the tailgate and replaces the ŠKODA logo.
ŠKODA dials into the future with new Virtual Cockpit option
ŠKODA is introducing a new, fully programmable digital instrument panel to its KAROQ, OCTAVIA, SUPERB and KODIAQ ranges - giving the customers the option to replace traditional analogue dials and gauges with a high-definition electronic display for the first time.
ŠKODA AUTO continues on the road to success. From January to the end of September, the car manufacturer increased its worldwide deliveries to customers by 7.8% year-on-year to a new record of 939,100 vehicles. ŠKODA AUTO also achieved sales revenue of 12.6 billion euros, an increase of 2.1% and the best result in the company’s history. The operating profit of 1.1 billion euros remained high in the first three quarters, but was negatively influenced by high financial expenditures for new models, electromobility and higher personnel costs.

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