Škoda Auto announces sales, turnover and profits for the first quarter of 2017.

• ŠKODA achieves best first quarter in company’s history
• Sales revenue increases by 28.3% to 4.3 billion euros compared to same period last year
• Operating profit increases by 31.7% to 415 million euros
• ŠKODA delivers 283,500 vehicles (+ 2.5%) in first three months of 2017
• Bernhard Maier: “ŠKODA was doing well during the first three months of the year and is on a stable growth path. However, the 2017 automotive year remains challenging.”

ŠKODA is highlighting its path to growth with the best first quarter in the company’s 122-year history. Never before has the traditional Czech brand achieved such strong results in sales revenue, deliveries and operating profit between January and March. The manufacturer delivered 283,500 vehicles (+ 2.5%) worldwide. Sales revenue increased by 28.3% to 4.3 billion euros in the same period, while ŠKODA’s operating profit increased by 31.7% to 415 million euros.

“ŠKODA was doing well during the first three months of the year and is on a stable growth path. However, the 2017 automotive year remains challenging; the volatile developments in some markets and the harsh competitive environment require careful attention,” says ŠKODA CEO Bernhard Maier, adding: “With our Strategy 2025, we are preparing the company for the social and technological changes facing the automotive industry. 

The recently presented electric study VISION E provides an outlook on how ŠKODA is actively shaping the individual mobility of tomorrow.”

In terms of sales revenue, ŠKODA grew by 28.3% to 4.334 billion euros between January and March 2017 (first quarter 2016: 3.379 billion euros). Operating profit rose by 31.7% to 415 million euros (first quarter 2016: 315 million euros). Return on sales grew by 0.3% compared to the same period last year and currently stands at 9.6%.

“Despite a challenging market environment and high volatility in exchange rates, ŠKODA achieved desirable results in the first quarter. The higher profitability is mainly attributable to positive volume, mix and exchange-rate effects,” says ŠKODA CFO Klaus-Dieter Schürmann. “We continue to operate from a position of financial strength. In light of the sometimes unpredictable developments in some regions of the world, it is more important than ever to work very cost-effectively.”

In terms of model series, the brand's flagship, the ŠKODA SUPERB, the small car FABIA and the compact RAPID achieved above-average growth rates. From January to March the SUPERB increased by 18.9% to 38,300 deliveries compared to the same quarter last year. The FABIA also posted strong growth in the first quarter (54,600 vehicles, + 10.2%). The RAPID developed positively with sales of 51,800 vehicles (+ 6.8%) in the first quarter of 2017.

With Strategy 2025, ŠKODA is consistently driving the growth of the brand, while simultaneously preparing for the technological and social changes facing the international automotive industry. Key elements of the strategy include expanding the SUV model range, the electrification of ŠKODA’s model range, the brand’s further internationalisation, and developing new integrated digital mobility solutions.

ŠKODA AUTO Group – Key figures for quarterly comparison, January to March 2017/2016 *:

		January - March		2017/2016
		2017	2016	Changes in %
Deliveries to customers	Cars	283,500	276,600	+2.5
Deliveries to customers excl China	Cars	216,700	201,200	+7.7
Production**	Cars	234,300	197,800	+18.5
Sales***	Cars	252,400	207,100	+21.9
Sales revenue	Million EUR	4,334	3,379	+28.3
Operating profit	Million EUR	415	315	+31.7
Return on sales	%	9.6	9.3	-
Investments (w/o capitalised
development costs)	Million EUR	96	71	+35.2
Net cash flow	Million EUR	591	527	+12.1

* Percentage deviations are calculated from non-rounded figures.

** Comprises the production of the ŠKODA brand, without production in China, Slovakia, Russia or India, but does include other Group brands, such as SEAT, Audi and VW; Vehicle production without part/complete kits

*** Comprises sales of the ŠKODA brand and includes other Group brands, such as SEAT, Audi and VW; Vehicle sales without part/complete kits

Skoda Auto posts a record first quarter for sales, and this will only continue with new models.

• Record Quarter: 283,500 deliveries (+2.5%)
• Best Month: 108,500 deliveries (+2.1%)
• Markets: ŠKODA grows in Western (+ 6.6%), Central (+14.9%) and Eastern Europe (+14.2%)
• Models: ŠKODA FABIA (+10.2%) RAPID (+6.8%) and SUPERB (+18.9%) rising sharply
• Looking to the future: Electro-study ‘VISION E’ premieres at Auto Shanghai 2017 

In the first quarter of 2017, ŠKODA sold more cars than ever before: Between January and March, the brand delivered 283,500 vehicles to customers (January-March 2016: 276,600) – 2.5% more than in the same period last year. In March, the deliveries rose by 2.1% to 108,500 units (March 2016: 106,300). 

This was the best sales result in one month in the company’s 122-year history. ŠKODA models were particularly popular in Europe. 

“ŠKODA successfully continued along its path to growth in the first quarter. This forms a good basis for further growth in the coming months,” says Werner Eichhorn, ŠKODA Board Member for Sales and Marketing. 

“The record figures are the result of an attractive model range and an outstanding team performance. We expect the current market launch of the SKODA KODIAQ to provide further momentum. 

The interest of customers in our new large SUV continues unabated. 4,700 vehicles have already reached their new owners in the first weeks.” 

In Western Europe, ŠKODA deliveries increased by 7.9% in March to 53,600 vehicles (March 2016: 49,600 vehicles). In the first quarter, sales in this region rose by 6.6% to 122,600 units (2016: 115,000 vehicles). In Germany, the brand’s strongest European single market, ŠKODA’s sales increased by 4.5% in March to 17,100 vehicles (March 2016: 16,300 vehicles) and in the first quarter by 4.9% to 40,800 vehicles (2016: 38,900 vehicles). In the first three months, ŠKODA recorded double-digit growth rates in Italy (6,700 vehicles, +20.9%), Austria (6,200 vehicles, +19.1%), Sweden (4,000 vehicles +13.4%) and France (6,200 vehicles +10.6%). 

In Central Europe, ŠKODA achieved an increase of 14.5% to 18,900 vehicles in March (March 2016: 16,500 vehicles). In the first quarter, the brand grew by 14.9% to 52,900 vehicles (2016: 46,100 vehicles). In ŠKODA’s home market, the Czech Republic, sales in March increased by 9.8% to 8,800 vehicles (March 2016: 8,000 vehicles), and in the first quarter by 12.3% to 24,600 vehicles (2016: 21,900 vehicles). The brand grew strongly in Poland (17,500 vehicles, +18.1%), Hungary (3,000 vehicles, +16.0%) and Slovakia (5,000 vehicles, +13.8%). 

In Eastern Europe excluding Russia, ŠKODA grew by 9.0% in March to 3,300 vehicles (March 2016: 3,000 vehicles). The Czech producer closed the first quarter with an increase of 14.2% and 8,500 deliveries (2016: 7,400 vehicles). In this period, deliveries to Ukraine rose by 114.7% to 1,200 vehicles (2016: 600 vehicles). 

In Russia, ŠKODA recorded a slight increase of 0.7% to 4,900 vehicles (March 2016: 4,800 vehicles) despite persistently challenging market conditions. Deliveries in the entire first quarter rose more significantly by 1.9% to 12,700 vehicles (first quarter 2016: 12,500 vehicles). 

In China, the brand’s largest market worldwide, ŠKODA delivered 21,800 vehicles to customers in March (March 2016: 25,600 vehicles; -14.8%).The manufacturer sold 66,800 vehicles in the first quarter of this year (first quarter 2016: -11.4%). This development is largely due to tax increases in various vehicle segments where ŠKODA is also represented. The company anticipated this development and expects that demand will return to normal in the second quarter. 

In terms of model series, the models ŠKODA SUPERB, RAPID and FABIA are driving the strong growth rates. The brand’s flagship, the ŠKODA SUPERB, increased by 18.9% to 38,300 deliveries in the first quarter. Sales of the ŠKODA RAPID series increased during the same period by 6.8% to 51,800 units. The small car FABIA recorded substantial growth in the first quarter (54,600 vehicles, +10.2%). ŠKODA CITIGO deliveries fell by 0.3% to 9,700 vehicles in the first three months due to the upcoming model change. Similarly, sales of the SKODA YETI (21,500, -20.0%), the successor of which will be presented to the public in the middle of May. As expected, deliveries of the SKODA OCTAVIA fell in the first quarter by 6.3% to 103,000 vehicles. This is due to the ongoing introduction of the updated model and the associated – temporarily limited – model availability in certain markets. 

The ŠKODA KODIAQ is also being gradually introduced in the markets. 4,700 of the brand’s new large SUV have already been delivered to customers. 

At the Shanghai motor show 2017, which takes place from 19 to 28 April, ŠKODA will be presenting their brand-specific outlook on the future of individual mobility with the concept study VISION E for the first time. The emotive five-door SUV coupé can travel up to 500 kilometres on electric alone and reaches Level 3 of autonomous driving. 

ŠKODA deliveries to customers in the first quarter of 2017 (in units, rounded off, listed by model; +/- in percent compared to the first quarter of 2016): 

ŠKODA OCTAVIA (103,000; -6.3%)

ŠKODA RAPID (51,800; +6.8%)

ŠKODA FABIA (54,600; +10.2%)

ŠKODA SUPERB (38,300; +18.9%)

ŠKODA YETI (21,500; -20.0%)

ŠKODA CITIGO (only sold in Europe: 9,700; -0.3%)

ŠKODA KODIAQ (4,700; - )

ŠKODA deliveries to customers in March 2017 (in units, rounded off, listed by model; +/- in percent compared to March 2016):

ŠKODA OCTAVIA (37,000; -6.1%)

ŠKODA RAPID (19,000; +3.8%)

ŠKODA FABIA (22,100; +8.0%)

ŠKODA SUPERB (13,800; +6.4%)

ŠKODA YETI (8,800; -16.9%)

ŠKODA CITIGO (only sold in Europe: 4,800; +6.8%)

ŠKODA KODIAQ (3,000; - )

The first quarter was an absolutely terrific start to the year for Ford - an all-time record for the company.

2016 FIRST QUARTER FINANCIAL RESULTS*

	Pre-Tax Results	Net Income	Revenue	Wholesales	Automotive Operating Margin	Automotive Operating- Related Cash Flow
1Q 2016	$3.8B	$2.5B	$37.7B	1,720K	9.8%	$2.7B
B/(W) 1Q 2015	$2.1B	$1.3B	152K	152K	5 ppts	$2.2B

"The first quarter was an absolutely terrific start to the year - an all-time record for the company, with very strong performance across the business. We're excited about our future and confident in our ability to deliver long-term growth and profitability, as we expand our business model to be both an auto and a mobility company."

Mark Fields, Ford President and CEO

HIGHLIGHTS

• Record quarterly pre-tax profit of $3.8B, up $2.1B; net income of $2.5B, up $1.3B; after-tax earnings per share of $0.68, excluding special items, up $0.39 from a year ago
• Strong Automotive operating-related cash flow of $2.7B, a first quarter record
• Record Automotive pre-tax profit of $3.3B, up $2.0B; Automotive operations outside North America profitable in total
• Record Automotive operating margin of 9.8 percent
• North America quarterly record pre-tax profit and operating margin
• Europe fourth consecutive quarterly profit and best quarter since 2008
• Ford Credit continued to deliver strong results
• Distributed $1.7B to shareholders including a regular quarterly dividend and a supplemental dividend of $1B
• Global market share up two-tenths of a percentage point from a year ago at 7.1 percent with gains in North America, Europe and Asia Pacific
• Launched new Fusion V6 Sport and announced plans for four all-new SUVs; on track for 12 global product launches
• Announced Ford Smart Mobility LLC subsidiary to design, build, grow and invest in emerging mobility services
• Became the first automaker to test autonomous driving in the snow
• Ford named a World’s Most Ethical Company by Ethisphere Institute for the seventh year in a row; only automaker on the list
• For 2016, continue to expect another strong year with sustained strong financial performance and returns and profitability across all parts of the business except South America

European markets experienced growth slowdown in March taking the year to date growth to +8.1%

• European markets experienced growth slowdown in March taking the year to date growth to +8.1%
• SUVs continued to be the main driver, posting registrations growth of 22% in March and 25% in Q1
• The Volkswagen Golf topped the model ranking, though recorded net market share loss
• Strong quarterly growth for the Peugeot 208, Opel/Vauxhall Astra and Fiat Panda
• The Hyundai Tucson and Renault Kadjar were the biggest market share winners 

March 2016 was another positive month for European new car registrations, ending a strong Q1 which saw sales of 3.93 million units, up by 8.1% over the first three months of 2015. Although volumes grew at a slower rate (+5.6%) than recorded in February 2016 (+13.8%), positive results in 23 of the 29 markets analysed meant growth continued. 

YTD figures showed gains in 26 markets, with 16 of them posting double-digit growth. The March SAAR came in at 14.98 million units.

 Grateful thanks goes to Jato Dynamics for the information included within this report. 

The SUV segment was the biggest growth driver, with its registrations counting for 25% of sales in March Q1 2016, an improvement on the 21.7% share this segment registered in March 2015 and during the first quarter of last year. B-Segment (subcompact cars) and MPVs suffered most, posting the highest market share loss.

Volkswagen was the best-selling brand in March and across 2016 so far, leading the rankings in Austria, Belgium, Croatia, Denmark, Germany, Latvia, Netherlands, Norway, Slovenia and Switzerland during the first quarter. However, it was also the brand to post the highest market share drop, with its March share reaching its lowest since September 2015 at 10.29% (vs. 11.10% in March 2015), and 11.02% for Q1 (vs. 11.97% in Q1 2015). In contrast, the biggest market share winners during the first three months of the year were BMW, Renault and Fiat, with the last two benefiting from strong SUV demand growth.

“Overall, we have seen a trend of positive growth so far this year. Consumers are consistently responding well to the brands’ latest launches, despite the problems faced by Europe’s largest car maker” commented Felipe Munoz, Global Automotive Analyst at JATO Dynamics.

With almost 56,000 units sold in March, the Volkswagen Golf topped the ranking by models, though its market share dropped from 3.39% in March 2015 to 3.21% last month. The European best-seller posted a 0% change in March, a more positive result than the falls in demand experienced by other leaders such as the Ford Fiesta (-11%) and the Opel/Vauxhall Corsa (-11%). These two subcompacts both experienced challenging times in the UK and Germany, where their registrations posted double-digit falls. This was, however, not unusual - of the top ten models, only three posted positive changes: Peugeot 208 (+4%), Opel/Vauxhall Astra (+18%) and Fiat 500 (+12%), which re-entered the top 10 thanks to the usual sales peak coming from the UK.

Year-to-date data revealed that registrations dipped for four of the top 5 best-selling models, with the Golf experiencing a 2% drop from Q1 2015, to 130,400 units. Similarly, the Ford Fiesta’s volumes dropped by 4%, the Renault Clio 3%, and the Opel/Vauxhall Corsa 6%. The Volkswagen Polo was the only model in the top 5 with a volume rise (+3%). All of these subcompacts were outpaced by the Peugeot 208, at sixth place, with registrations up by 13%, gaining 0.08 percentage points of share. Nissan’s Qashqai placed 7^th, maintaining its position as the best-selling SUV in Europe with 66,200 units, though it only saw a 1% rise in volumes compared to the first quarter of 2015. This loss of market share was due to tougher competition. These models were followed by the new Opel/Vauxhall Astra, which jumped from 16^th place in Q1 2015 to 8^th place this quarter, posting a 30% volume increase, thanks mostly to strong growth in the German market (+46%), which offset the loss seen in the UK (-2%).

Seven of the ten biggest market share winners were SUVs, with the new Hyundai Tucson controlling almost 1% of the market, following strong demand in the UK, Germany, Italy and Ireland. The Tucson was the third best-selling compact SUV, outselling other important players such as the Volkswagen Tiguan and Ford Kuga. The Hyundai was followed by its rival from Renault – the Kadjar – with 0.84% market share, and France counting for 30% of its European volume. The Suzuki Vitara, Fiat 500X, Mecedes GLC, Mazda CX-3 and BMW X1 were the other SUVs to gain more market share, along with the Opel/Vauxhall Karl/Viva and Astra, and the Skoda Superb.

“SUVs continue to post strong growth at the expense of the traditional segments. The first quarter results reveal a clear trend of European consumers shifting their interest from subcompact and compact cars, and from MPVs to small and compact SUVs”, concluded Munoz.

Sales by Market/Make/Model

Country	Mar-16	Mar-15	% Change	2016-Q1	2015-Q1	% Change Q1
Austria	31,941	31,086	3%	78,455	75,154	4%
Belgium	55,637	55,251	1%	150,456	147,087	2%
Croatia	4,013	3,400	18%	8,732	7,961	10%
Cyprus	910	695	31%	2,567	2,083	23%
Czech Rep.	22,799	21,156	8%	59,598	53,276	12%
Denmark	19,188	20,046	-4%	52,226	49,791	5%
Estonia	2,085	1,993	5%	5,544	4,924	13%
Finland	11,627	11,089	5%	33,061	29,338	13%
France	211,218	196,524	7%	516,284	477,234	8%
Germany	322,913	323,039	0%	791,424	757,630	4%
Greece	6,305	6,523	-3%	15,299	17,258	-11%
Hungary	7,506	6,315	19%	19,729	17,170	15%
Ireland	21,597	18,933	14%	82,947	64,519	29%
Italy	192,156	163,515	18%	523,556	433,186	21%
Latvia	1,548	1,233	26%	3,884	3,210	21%
Lithuania	1,625	1,271	28%	4,593	3,761	22%
Luxembourg	5,040	4,868	4%	12,965	11,856	9%
Netherlands	29,742	28,845	3%	98,670	110,701	-11%
Norway	14,066	14,337	-2%	37,399	35,653	5%
Poland	39,219	33,599	17%	104,671	91,665	14%
Portugal	26,466	20,092	3  2%	58,424	46,243	26%
Romania	6,572	5,339	23%	17,471	14,433	21%
Serbia	2,429	1,814	34%	5,008	3,877	29%
Slovakia	7,834	6,558	19%	19,953	16,340	22%
Slovenia	6,106	5,958	2%	16,691	15,647	7%
Spain	112,817	113,838	-1%	288,776	268,187	8%
Sweden	34,712	31,590	10%	83,229	75,733	10%
Switzerland	28,627	31,410	-9%	71,177	72,372	-2%
UK	518,707	492,77	45%	771,780	734,588	5%
TOTAL	1,745,405	1,653,091	6%	3,934,569	3,640,877	8%
Make	Mar-16	Mar-15	% Change	2016-Q1	2015-Q1	% Change Q1
Volkswagen	179,618	183,516	-2%	433,620	435,894	-1%
Ford	137,672	138,032	0%	288,888	271,949	6%
Opel/Vauxhall	125,974	118,444	6%	268,072	241,645	11%
Renault	118,871	107,183	11%	263,867	242,944	9%
Peugeot	98,268	96,370	2%	235,213	222,414	6%
Audi	94,875	87,810	8%	215,422	192,121	12%
BMW	94,819	82,101	15%	205,378	182,176	13%
Mercedes	90,704	83,275	9%	202,808	180,826	12%
Fiat	83,743	74,004	13%	196,920	169,543	16%
Nissan	78,791	81,756	-4%	161,220	165,402	-3%
Model	Mar-16	Mar-15	% Change	2016-Q1	2015-Q1	% Change Q1
Volkswagen Golf	55,977	56,070	0%	130,367	132,850	-2%
Ford Fiesta	42,432	47,769	-11%	84,150	88,077	-4%
Opel/Vauxhall Corsa	36,724	41,119	-11%	74,049	78,923	-6%
Renault Clio	34,736	36,668	-5%	77,762	80,227	-3%
Volkswagen Polo	33,472	33,522	0%	81,054	78,853	3%
Nissan Qashqai	31,146	31,828	-2%	66,238	65,601	1%
Ford Focus	30,849	32,587	-5%	60,348	60,996	-1%
Peugeot 208	28,655	27,545	4%	68,900	60,914	13%
Opel/Vauxhall Astra	27,886	23,619	18%	61,478	47,159	30%
Fiat 500	25,794	23,122	12%	52,885	50,332	5%