Volkswagen:Quarterly Results/2024 Q3: Difference between revisions

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 See also: [https://docs.google.com/spreadsheets/d/1N5-EbJE-JY6cILPETeU8LtbMcSBoPyBgk8Y_w21J1uw/edit?gid=1414737805#gid=1414737805 Valuation Model] | [[Earnings Season:2024 Q2]] | [[Earnings Season:2024 Q1]] | [[Earnings Season:2023 Q4]] | [[Earnings Season:2023 Q3]] | [[Earnings Season:2023 Q2]] | [[Earnings Season:2023 Q1]] | [[Earnings Season:2022 Q4]]
+== Earnings call summary ==
+Sources: [https://seekingalpha.com/article/4730930-volkswagen-ag-vwagy-q3-2024-earnings-call-transcript Q3 2024 Volkswagen Earnings Call Transcript] | [https://www.webcast-eqs.com/login/volkswagen-2024-9m Q3 2024 Volkswagen Analysts and Media Webcast]
+=== Restructuring at the brand group core ===
+* CFO Arno Antlitz reiterated that costs at the German operations and plants are far from being competitive.
+=== Products ===
+* Arno Antlitz said the new ID.7 GTX (launched in Q3) is now the most powerful electric car from the Volkswagen brand, recording 794 kilometers of range in a single charge.
+* The new ID unique e-SUV has been launched in China.
+* Starting from early October, Skoda's first all-electric SUV starting from €33,000 is on sale.
+=== Joint venture with Rivian ===
+* Antlitz said they received all the necessary regulatory approvals in the past month.
+* Antlitz pointed out that they were able to prove full technical feasibility of the Rivian architecture and software in a drivable demonstrator vehicle.
+* Antlitz noted that the JV fits well into their platform strategy and road map.
+* Antlitz pointed out that they have all the ingredients to succeed in the U.S truck segment.
+=== Deliveries ===
+* Antlitz said order intake in Western Europe remains robust due to seasonal effects.
+* Antlitz said they had an order intake of  674,000 units in Western Europe in Q3, up 27% y/y and down by around 87,000 units from the previous quarter.
+* He noted that order intake accelerated substantially again in September compared to the summer months and the previous year due to attractive new lineup which are becoming more available in the markets.
+* At the end of September, they had an order intake of 870,000.
+* Antlitz said BEV order intake in Q3 showed an encouraging trend, more than doubling from last year, boosted by recent new product launches.
+=== Q3 2023 and 9M 2024 revenue and operating results ===
+* Antlitz reiterated that Q3 was expected to be the weakest quarter in 2024 due to seasonal factors, weak volumes, restructuring costs (€1.2 billion) at Audi and supply headwinds at Porsche.
+* He said that the supply shortages of Six and eight cylinder engines at Audi normalized in Q3.
+* '''Antlitz said pricing stabilized in Q3, boosted by last year's price increases but offsetted by higher temporary sales promotions, specifically for BEVs.'''
+* Product costs were a minor headwind in the 9M 2024.
+* '''Overhead cost ratio stood at 17.4% in the 9M of 2024 (9M 2023:15.7%) driven by carryover effect of wage increase from 2023 and the lower sales revenue.'''
+* Revenue at the Brand Group Core was stable y/y, supported by increased vehicle list prices and positive mix but held back by higher fixed costs and price incentives for BEVs.
+* Unit sales at Traton normalized in Q3.
+* Volkswagen Group Mobility credit loss ratio remained stable.
+* Financial Services division operating result fell to €2.2 billion in the 9M of 2024 due to continued normalization of used car prices, especially outside Europe and higher risk costs.
+* The proportionate operating result from China JVs fell 37% y/y to €1.2 billion in the 9M of 2024 due to lower sales volume as a result of intense competition, margin dilutive effects from higher BEV sales and costs associated with the realignment of business there. Overall, results are in line with their expectations and they expect to end the year with a proportionate operating result of €1.6 billion
 == Management and analysts expectations ==