Corporate Finance: Automotive Manufacturing Q2 2021 Results
Reporting a half year revenue of 141bn SEK (US$16.3bn) - up 26% - Volvo cars has reported its best half year in 94 years of operations, driven by strong demand from all regions.
“The company continued to grow strongly despite the industry-wide semiconductor shortage, but more importantly, we demonstrated that we are a leader of the ongoing transformation in the automotive industry,” said Håkan Samuelsson, Chief Executive of Volvo Cars.
“Volvo Cars has a decade-long track record of successful transformation. The car industry is changing more than ever, and we have a strong determination to be the fastest transformer,” added Samuelsson.
Finishing the first half of 2021 successfully, which Volkswagen attributes to successful crisis management, strict cost discipline and systematic implementation of its ACCELERATE strategy, the number of vehicles delivered by Volkswagen rose to 2.7 million (500,000 more than the previous year). The company’s sales revenue also grew by 42% year-on-year to €40.7bn.
“We succeeded in further reducing our fixed cost ratio. Our strict cost discipline, the good progress we have made in implementing our strategic realignment in North and South America, results-oriented management of the markets and significant volume growth are giving a boost to our financial figures,” said Alexander Seitz, CFO, Volkswagen.
Deliering ‘better-than-expected’ operating results in the second quarter of 2021, the company rreported its Q2 revenue as US$26.8bn.
“Ford+ is about creating distinctive products and services, always-on customer relationships and user experiences that keep improving. And it’s already happening – there are great examples everywhere you turn at Ford, and the benefits for our customers and company will really stack up over time,” said Jim Farley, president and CEO, at Ford.
Reporting record-breaking figures for the organisation, Bentley Motors marked a key milestone in its history for the first half of 2021. While continuing to navigate the global uncertainty, Bentley Motors records its highest-ever profitability at the half-year stage.
“These results are an important milestone on our mission Beyond100, namely to become the leading sustainable luxury mobility company by 2030. They are the outcome of favourable market conditions, combined with three years of hard work within Bentley, where we have reinvented our products, restructured our operations, managed three crises, and defined our 2030 strategy,” commented Adrian Hallmark, Chairman and CEO at Bentley Motors.
The company’s operating profit totalled €178 million, with its retail sales increasing by 50% (4,785 in 2019 pre-COVID-19, to 7,199 in 2021). The sales were balanced between the Bentayga (2,767), Continental GT (2,318) and Flying Spur (2,063).
“We have worked relentlessly to transform our entire organisation through productivity improvements and cost efficiencies, and the double-digit return on sales is validation that we are on the right path to enable a sustainable business model. While we celebrate these results, we are not taking the full-year outlook for granted as we know there are still sizable risks to the year-end, notably the increasing number of colleagues having COVID enforced self-isolation periods,” added Hallmark.
Rolling out its electrified products in January 2020, Peugeot’s low emissions vehicle (LEV) car sales have doubled in 2021. Increasing by 112% the manufacturer sold just over 6,000 full electric and plug-in hybrid vehicles in the first seven months of 2021.
“Our strong LEV sales volume and sales mix are extremely encouraging – it’s great to see the appeal that our full electric and plug-in hybrid range has with our customers. We are committed to offering an electrified variant for each vehicle in our broad range by 2025, so customers have the power of choice and never have to compromise!,” said Julie David, Managing Director, PEUGEOT, UK.
Hyundai Motor Company
While other automotive manufacturers reported stong results despite COVID-19 and the semiconductor chip shortage, Hyundai Motor Company saw a 2.4% decrease in units sold year-on-year.
“Hyundai Motor expects that on-year sales growth could be slowed down for the rest of this year amid adverse business conditions caused by the resurgence in COVID-19 pandemic, as well as the unstable supply of semiconductor chips. However, the company will endeavor to sustain its sales momentum for the rest of the year and proactively cope with the risks,” said Hyundai Motor Company.