Sales and profits soar in the first half of 2010 
7/29/2010
The largest Czech manufacturer's result for the first half of 2010 shows not only a new record in sales but also growth in profits.

Škoda Auto delivered 378.7 thousand cars, which translates into a year on year growth of 49.1 thousand cars (+ 14.9%). Operating income reached CZK 5.9 billion, which by comparison with last year represents an improvement of CZK 1.7 billion (+40.6 %).

The increase in deliveries was mainly due to growth in the Chinese market. 84.1 thousand vehicles (+82.3%) alone were sold there. The company also improved its sales to Western European markets excluding Germany (117.3 thousand vehicles sold, +34.5%). Sales in Germany, however, decreased as expected due to the end of the vehicle scrappage scheme (58.0 thousand vehicles sold, -33.8%). With 30.4 thousand vehicles (+16.6%) sold, the company managed to increase significantly its sales in the Czech Republic as well. Developments in the Superb (+149.6%), Yeti (+> 500%) and Octavia (+20.0%) model ranges have been particularly encouraging.

In the first half of 2010, Škoda Auto group revenues increased to CZK 109.7 billion (+22.3 %). Operating income reached CZK 5.9 billion, which represents an improvement of CZK 1.7 billion (+40.6 %). The financial result growth was not only due to the underlying increase in car sales (298.2 thousand vehicles +13.6%), but also due to a positive model mix, continued cost optimization and gains from exchange rate differences.

"While the positive development in the number of vehicles sold in the first half of 2010 was mainly due to favourable market developments, Škoda's expanded model range also contributed to the increase in market share. Moreover, the Škoda brand benefited from the particularly strong market in China. This was reflected in the results achieved," said Reinhard Jung, Chairman of the Board of Directors of Škoda Auto, adding: "On the back of economic uncertainty in many markets and the end of government sponsored environmental schemes our expectations for the second half of the year are more conservative. Nevertheless, for the full year 2010 we expect a significant improvement in sales and financial results."

January-June

 

 2010

2009

2010/2009 (%)

 
Deliveries to Škoda customers


vehicles tsd.


378.7

 
329.6

 
14.9

Sales total*

vehicles tsd.

 298.2

262.4

13.6

Production total**

vehicles tsd.

289.3

247.1

17.1

Number of employees***

persons

 25 840

27 257

- 5.2

Sales

CZK millions

109 707

89 696

22.3

Gross profit

CZK millions

13 557

10 493

29.2

Operating profit

CZK millions

5 855

4 163

40.6

Profit before income tax

CZK millions

5 521

3172

74.1

Profit after income tax

CZK millions

4 766

2 736

74.2

Investment (incl. activated development costs)

CZK millions

1 682

4 858

- 65.4

Cash flow from operating activities

CZK millions

12 573

15 688

- 19.9

Net liquidity

CZK millions

38 751

26 345

47.1

*) the sales figure also includes sales of vehicles of SEAT sold by SAS, VW and AUDI vehicles sold by SAIPL
**) the total production figure also includes production of vehicles of Volkswagen and Audi manufactured by SAIPL
***) Headcount as of 30 June of the relevant year, including agency staff

9/2/2010
The portfolio of diesel engines available with the Superb is going to be extended with the four-cylinder unit 1.6.TDI CR/77 kW that has already proved its calibre in the Octavia.
9/2/2010
Bohdan Wojnar was appointed the new Board member responsible for Human Resources at Škoda Auto, Klaus Dierkes was named Group Representative for Human Resources in China.
8/17/2010
At this year’s  Moscow Motor Show (25 – 29 August, 2010), Škoda Auto will stage national premieres of its flagship Superb Combi,  Fabia RS, the facelifted Fabia and Fabia S2000 rally car.