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Volkswagen Sees Higher Sales Revenue, Deliveries; Plans More Electric Vehicles

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German auto giant Volkswagen AG (VKW.L,VLKAF.PK,VOW.BE) announced Tuesday that it expects fiscal 2019 sales revenues to grow by as much as 5 percent year-on-year. Operating profit margin for the Group is expected in the range of 6.5 percent to 7.5 percent. The company expects slightly higher deliveries in 2019 amid continuously challenging market conditions.

Separately, Volkswagen announced that it is planning to launch almost 70 new electric models in the next ten years - instead of the 50 previously planned. As a result, the projected number of vehicles to be built on the company's electric platforms in the next decade will increase to 22 million from earlier projected 15 million. Volkswagen said it has signed off a comprehensive decarbonization program aimed at achieving a fully CO2-neutral balance in all areas from fleet to production to administration by 2050.

In its Passenger Cars brand, the company reported weak adjusted operating profit and margin in fiscal 2018 mainly as a consequence of the changeover to WLTP. However, sales revenue increased from last year.

The operating profit before special items amounted to 3.2 billion euros, down from 3.3 billion euros last year. The operating return on sales before special items was 3.8 percent, down from 4.2 percent last year.

However, Volkswagen Passenger Cars brand sales revenue grew 6.8 percent from last year to 84.6 billion euros.

Audi brand generated an adjusted operating profit of 4.7 billion euros, lower than last year's 5.1 billion euros. Adjusted operating margin declined to 7.9 percent from 8.5 percent last year. Sales revenue of the Audi brand came in at 59.2 billion euros, down from 59.8 billion euros a year ago in a difficult market environment.

ŠKODA brand's operating profit fell 14.6 percent to 1.4 billion euros, while sales revenue grew 4.4 percent to 17.3 billion euros.

For SEAT brand, both operating profit and sales revenue increased as positive volume and mix effects more than offset the negative impact of cost increases and exchange rates.

Bentley brand generated sales revenue of 1.5 billion euros, a decline of 16.0 percent year-on-year, and it recorded an operating loss, compared to profit last year.

The sales revenue generated by Porsche Automotive rose 9.2 percent to 23.7 billion euros. Operating profit increased 2.7 percent year-on-year to 4.1 billion euros.

In Germany, Volkswagen shares were trading at 146.22 euros, down 0.30 percent.

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