ŠKODA AUTO Group* achieved sales revenues of 4.85 billion euros in the first quarter of 2020, 1.4% below the previous year’s figure. Operating profit reached 307 million euros and thus remains at a solid level, as does the return on sales at 6.3%. However, comparing these figures to the record year of 2019 clearly shows that ŠKODA’s overall business has been severely affected by the current economic situation and the necessary measures to prevent the further spread of the Covid-19 pandemic. A look at the deliveries demonstrates this: From January to March 2020, the Czech car manufacturer delivered 232,900 vehicles to customers worldwide, which is significantly lower than the previous year (first quarter of 2019: 307,600 vehicles; -24.3%). Nevertheless, the company continues to invest consistently in its future and is pursuing its transformation from a dedicated automaker to a ‘Simply Clever Company for the Best Mobility Solutions’.
ŠKODA AUTO CEO Bernhard Maier says: “ŠKODA AUTO has achieved record results in recent years and still has sufficient liquidity. This is of great benefit to us in this extremely difficult situation. At present, nobody can accurately estimate how the covid-19 pandemic will affect global car sales in the coming months. One thing is clear: due to the production stop, more than 100,000 vehicles could not be manufactured at ŠKODA. Nevertheless, we are fighting for every car, because our order backlog is still high. Our company is strategically well-positioned, has an excellent foundation and an attractive, modern model portfolio. We are therefore sticking to our medium and long-term plans.
We now need targeted government stimuli for the economy as a whole that will take effect quickly and across the board in order to safeguard jobs in the long term and restore confidence in society.”
ŠKODA AUTO Board Member for Finance and IT Klaus-Dieter Schürmann emphasises: “We are also feeling the acute economic effects of the Covid-19 pandemic and the measures required to contain it. Collapsing sales volumes, declining sales revenue and negative exchange rate effects impacted our earnings. Securing liquidity is of central importance in the current situation. ŠKODA AUTO has therefore implemented comprehensive measures to effectively reduce costs and expenses in the short term. With regard to the further financial effects and risks of the Covid-19 pandemic, we must take a long-term view. We expect the greatest impact of the current crisis to be in the second quarter, followed by a gradual recovery in the third quarter and a possible return to the previous year’s level in the fourth quarter.”
Alain Favey, ŠKODA AUTO Board Member for Sales and Marketing, explains: “The current situation poses enormous challenges for our entire sales organisation. From January to March, we recorded a worldwide decline of around 24% compared to the same period last year. In recent weeks, we have prepared a comprehensive package of measures for each market to support our dealers and importers. Our goal is to get back on track as quickly as possible after the gradual reopening of the dealerships.”
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SOURCE: ŠKODA
