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Volkswagen:Quarterly Results/2024 Q3: Difference between revisions
Volkswagen:Quarterly Results/2024 Q3 (view source)
Revision as of 07:45, 31 October 2024
, 31 October 2024→Earnings call summary
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* Antlitz also said that they are also looking into other costs such as material costs. | * Antlitz also said that they are also looking into other costs such as material costs. | ||
* Antlitz said in the Q&A that nothing happened in the last few months that made them to increase their stance on cost-cuts. They just want to deliver on the 6.5% target by 2026. | * Antlitz said in the Q&A that nothing happened in the last few months that made them to increase their stance on cost-cuts. They just want to deliver on the 6.5% target by 2026. | ||
* | *'''Antlitz said in the Q&A that the €10 billion is now slightly higher due to negative effects hence they need to do more to achieve it. "We need to achieve the 6.5% in 2026. So we originally started with €10 billion. And so what happened was like some of the €10 billion had like negative -- we saw negative effects. For example, we had some assumptions on pricing and on positive effects on the pricing side. So that didn't materialize due to higher -- much intensified competition, " he said. And so we had to I would say, step up the €10 billion. So the €10 billion are now slightly higher."''' | ||
*'''Antlitz said in the Q&A that further restructuring charges in Q4 cannot be ruled out.''' | |||
*Rolf Woller said in the Q&A that if they don't agree with the unions then the 1984 agreement will come into force (which leads to an increase in wages by 10%). | |||
=== 2025 CO2 targets === | === 2025 CO2 targets === | ||
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* Antlitz said (Q&A) the only BEV with margin is the upcoming ID.2. | * Antlitz said (Q&A) the only BEV with margin is the upcoming ID.2. | ||
* Antlitz pointed out (Q&A) that he cannot rule out employee strike in December due to the restructuring efforts. | * Antlitz pointed out (Q&A) that he cannot rule out employee strike in December due to the restructuring efforts. | ||
=== Deliveries === | === Deliveries === | ||
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* 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. | * 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. | * 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. | * At the end of September, they had an order intake of 870,000. Pre-pandemic they had an order book of 800,000. | ||
* Antlitz said BEV order intake in Q3 showed an encouraging trend, more than doubling from last year, boosted by recent new product launches. | * Antlitz said BEV order intake in Q3 showed an encouraging trend, more than doubling from last year, boosted by recent new product launches. | ||
* Antlitz said in the Q&A that before the pre-pandemic, the total market in Europe was | * Antlitz said in the Q&A that before the pre-pandemic, the total market in Europe was 16 million cars and and after the pandemic it went to 14 million cars. Since they have 25% market share, that leads to overcapacity of 500,000 cars and they don't expect that to change. | ||
* '''Antlitz said in the Q&A trends in Europe such as household income and high energy costs indicate that the market in Europe will not grow significantly post-pandemic. He expects 1% to 2% growth next year.''' | |||
* Rolf Woller also said (Q&A) that third-party data indicates that growth in Europe will not change much from the 14 million. | |||
=== Q3 2023 and 9M 2024 revenue and operating results === | === Q3 2023 and 9M 2024 revenue and operating results === | ||
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* 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. | * 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 | * 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 | ||
=== 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. | |||
* Antlitz said (Q&A) Audi has a very strong product momentum such as the Q6 etron, A5, A7, Q5 and Q7. He expects this momentum to benefit Audi over the coming 24 months. | |||
=== 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. | |||
* Scout EVs likely to use the Rivian architecture though it's not 100% decided, Antlitz said in the Q&A. | |||
=== Dividend === | === Dividend === | ||
* Antlitz said their payout ratio is set at 30% and that is still valid. However, the current situation is impacting the profitability, hence the dividend in 2024 could be below €9.6 per preferred share of 2024. | * Antlitz said their payout ratio is set at 30% and that is still valid. However, the current situation is impacting the profitability, hence the dividend in 2024 could be below €9.6 per preferred share of 2024. | ||
=== CARIAD === | |||
* Antlitz reiterated in the Q&A that CARIAD will still play an important role in the group since it's developing the 1.2 software for the PPE platform. | |||
* Antlitz expects CARIAD to improve significantly when it comes to EBITDA and cash flow as more products associated with it are launched. Improvements from next year are expected. | |||
* Expenditure at this brand is also expected to move down. | |||
== Management and analysts expectations == | == Management and analysts expectations == | ||