The Q3 figures from $VOW (+1.34%) seem dramatic at first glance. But you have to take a closer look.
š Key figures:
- Q3 revenue: ā¬75.3 billion (-6.3%)
- Operating income: -ā¬5.9 billion (previous year: -ā¬1.3 billion)
- Net income after taxes: -ā¬5.8 billion
- Operating cash flow in the automotive business remains positive; net cash flow after 9 months stands at ā¬4.4 billion
The billion-euro loss is primarily due to write-downs. The Porsche division alone accounts for approximately ā¬6.4 billion. Added to this are other one-time charges, including those in China and from restructuring.
Excluding these one-time effects, VW would have achieved an operating profit of ā¬8.8 billion after nine months. That sounds significantly better, but an operating margin of 3.8% for a group of this size is not sufficient to ensure long-term viability or to keep pace with the market in terms of investment.
VW is still profitable on an operational basis, but the need for action is enormous. The problems are well known: China is āstrugglingā or, in fact, falling apart (-38% in sales), competition is intensifying on all fronts, and costs are too high (especially in Germany).
In my view, the figures also simply show how important the plant in the U.S. is and that Trumpās move to exploit the current weakness was ācleverā but also unavoidable. In addition to the billions in subsidies that Audi is reportedly set to receive for the plant, there are rumors that there will also be tariff relief for the entire? VW Groupāand thatās especially important for Porsche, which doesnāt have its own plant in the U.S.
Bottom line: Iām going to hold onto my VW shares and hope that itāll pay off someday! š