) posted a 37.6% fall in earnings to €4.18 ($5.50) per share in
the first quarter of 2013 from €6.70 in the same quarter of 2012.
Net earnings declined 35.2% to €2.0 billon ($2.7 billion) from
€3.1 billion in the first quarter of 2012.
The lower earnings were attributable to lower revenues
generated from the company's Automotive segment owing to
deteriorating European markets.
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Revenues in the quarter dipped 1.6% to €46.6 billion ($61.5
billion). However, Volkswagen's global deliveries increased 4.8%
to 2.3 million vehicles while vehicle sales rose 5.1% to 2.4
Revenues from the Automotive segment fell 3.5% to €41.1 billion
($54.3 billion) while operating profits from the segment ebbed
31.7% to €1.9 billion ($2.5 billion) from €2.8 billion a year
ago. However, revenues from the company's Financial Services
segment grew 15.8% to €5.4 billion ($7.2 billion) while operating
profit grew 21.3% to €416 million ($549.1 million) from €343
million a year ago.
Volkswagen had cash, cash equivalents and time deposits of €23.2
billion ($30.7 billion) as of Mar 31, 2013 compared with €18.5
billion as of Dec 31, 2012. The company's current liabilities
increased to €114.4 billion ($151.1 billion) as of Mar 31, 2013
from €105.5 billion as of Dec 31, 2012.
In the first quarter of the year, Volkswagen's cash flow from
operations improved 75.3% to €2.5 billion ($3.4 billion) from
€1.5 billion in the same quarter a year ago. Meanwhile, capital
expenditures remained almost flat at €1.7 billion ($2.3 billion)
compared with the prior-year level. Net cash flow was €120
million ($158.4 million) compared with a net cash outflow of €1.3
billion a year ago.
Volkswagen, a Zacks Rank #4 (Sell) stock, has targeted to become
the world's largest carmaker both in terms of sales and
profitability by 2018 based on the strength in emerging markets,
including Brazil, Russia, India and China. Other European
automakers that are affected by the weakening European market
While we intend to avoid Volkswagen, other stocks that is worth a
), which carries a Zacks Rank #2 (Buy).
(Exchange Rate: €1 = $1.32)