Volkswagen AG — Management Reports 2004

Mar 9, 2004

News Details

Ad-hoc | 9 March 2004 09:59

Volkswagen Group: Outlook 2004

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Volkswagen Group: Outlook 2004 In 2003, the Volkswagen Group made substantial progress towards becoming a powerful multi-brand group in spite of unsatisfactory earnings developments. Despite tough competitive conditions in 2003, vehicle deliveries once again topped the 5 million mark, and the Group slightly increased its world market share. Sales revenue totalled 87.2 (2002: 86.9) billion Euro. However, this success was not reflected satisfactorily in earnings development, which was instead hit by negative effects such as the strong Euro, weak economic conditions and the resulting pressure on margins. Volkswagen must take note that there are no signs of economic recovery yet. The whole automobile industry is exposed to the strains of the markets and high exchange rates. The Volkswagen Group is responding to these developments with the “ForMotion” program of measures. With “ForMotion”, the Volkswagen Group is doubling its efforts to safeguard earnings and intends to achieve additional savings of some 2 billion Euro by the end of 2005. Savings already planned for the same period also total 2 billion Euro. The minimum goal is to achieve a balanced cash flow in 2004. Automobile markets have started the year very weak. That was especially true for January, while February has shown slight signs of improvement. Even though the Volkswagen Group has gone against the trend in this period and increased its market share during this period, the first quarter will be “lousy”, even compared with last year. In view of the growing price pressure, the weak economy and the unfavourable exchange rates it is an ambitious goal for the Group to aim at topping the operating profit before special items of some 2.5 billion Euro from the previous year in 2004. “ForMotion” will provide vital support. end of ad-hoc-announcement (c)DGAP 09.03.2004 ——————————————————————————– WKN: 766400; ISIN: DE0007664005; Index: DAX, Euro Stoxx 50 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; EUREX; Amsterdam, Antwerpen, Brüssel, London, Luxemburg, Paris, Schweizer Börse (Hauptsegment), Wien, Tokio, Madrid, Barcelona, Bilbao, Valencia und Mailand 090959 Mär 04