2006 Was Škoda Auto's Best Year Ever
Financial results of ŠKODA AUTO a.s. and the Škoda Auto Group according to the International Financial Reporting Standards (IFRS) were announced today (February 22, 2007) at the company's annual press conference in Mladá Boleslav. The Škoda Auto Group is made up of the parent company ŠKODA AUTO a.s and its fully consolidated subsidiaries: ŠkodaAuto Deutschland GmbH, ŠKODA AUTO Slovensko, s.r.o., Skoda Auto Polska S.A. and Skoda Auto India Private Ltd. OOO VOLKSWAGEN RUS is an affiliate company. Despite an overall market stagnation in Central- and Western Europe, the year 2006 saw the Škoda brand increase its shares in strategically important markets and thus improve its sales and turnover figures. Revenues grew by 8.7% to reach CZK 203.7 billion, the operating profit grew by 34.5 % (CZK 14.6 billion, 7.2% profitability).
The factors behind the positive trends in the Škoda Auto Group's financial and other parameters include the company's successful model and site organisation policies including increased sales volumes, as well as successful implementations of process and cost optimisation programmes.
Commenting upon the 2006 results, Holger Kintscher, Škoda Auto BOD member responsible for finance, said: “2006 was the most successful year in the history of the Škoda Auto Group, and we are pleased about the trend in the pre-tax profit that we have managed to increase by 41% (compared to 2005), to CZK 14.2 billion. The dynamic growth of our financial indicators shows that we are doing well in terms of quantity, i.e., increasing the volume of sales, and that our quality is improving, too, which makes us optimistic as far as the future of the Škoda brand is concerned. However, we are rather concerned about some costs in the Czech Republic, mainly in connection with exchange rate tendencies and the increasingly strong Czech crown. Just like other companies in the Czech Republic that export a lot, Škoda, a company where exports account for a dominant share of the overall turnover, has incurred considerable damage. And the never-ending postponing of the Euro introduction does not contribute to certainty in our planning, either.“
Škoda Auto exported vehicles, original spare parts and other components worth CZK 164.2 billion in 2006. Accounting for about 7.7% of the Czech Republic's total exports, the company has kept its position of the country's leading exporter.
The number of employees at the Škoda Auto Group was 27,680. The full-time staff headcount at Škoda Auto a.s. grew by 2.1 % to 23,034 as at December 31, 2006. The average number of agency-provided staff in direct operations at Škoda Auto a.s. dropped slightly (3,593 in 2005 vs 3,358 in 2006).
Commenting on last year and outlining the company's future, Škoda Auto BOD Chairman Detlef Wittig said: “The year 2006 was exceptional in many respects. We launched the Roomster, our fourth model line, in the respective markets. We managed to get over the magical threshold of 500,000 vehicles produced and sold and closed the year with record-breaking results. In the context of the company's continuous development, 2007 is going to be the year of the new Fabia and we all believe that this new vehicle will be as successful as its predecessor. We are going to focus on reinforcing our positions in European markets and on extending our capacities in China, Russia and India. We have confirmed our ambitions as a renowned automotive brand. Expecting further growth, we have also set clear goals in all segments of our overall financial result.”
Having delivered altogether 549,667 Octavia, Fabia, Superb and Roomster vehicles to its customers in 2006, Škoda Auto has increased its sales by 11.7 %.
For the first time in the company's history, the best-selling model was the Octavia (270,274 vehicles including the estate version, 15.8% growth). The previously best-selling model, Škoda Fabia (hatchback, sedan and estate) finished second with 243,982 vehicles (3.1% growth, compared with the previous year). On top of that, the company sold 20,989 Superbs and 14,422 Roomsters. Still in the year of its launch, the Roomster became the vehicle of the year in Estonia, Finland and Bulgaria and the family vehicle of the year in Sweden and Belgium.
Škoda increased its sales in Western Europe by 9.1% (301,343 vehicles in total). The most successful markets were Germany, Great Britain, Spain and Austria. Year-on-year sales and market share figures went up, too. Germany, Škoda's best market, saw 118,527 new vehicle registrations (market share of 3.4%).
In Central and Eastern Europe (Czech Republic not included), Škoda delivered 146,612 vehicles (21.6% growth, compared with 2005). The best markets in this region were Poland where Škoda sealed its position of the country's best-selling brand and Slovakia, a market that has been strong for many years. Škoda also grew significantly in Romania, the Ukraine and Russia. Altogether 65,171 Škoda vehicles were sold in the Czech Republic (sales comparable with the figures of 2005).
Škoda Auto sold 36,541 vehicles (+21.1%) in Asia and overseas. The leading markets there are India, Turkey and Egypt.
Source: Skoda
