Skoda Auto Finishes Quarter One in Profit

MLADA BOLESLAV . CZECH REPUBLIC – May 26, 2009: Skoda Auto has reported an operating profit of approximately €28 million, despite the worldwide economic crisis.

The Czech Republic’s largest car manufacturer delivered 143,079 cars to customers in First Quarter 2009. Compared to the same period last year, this is a drop of 17.5%, a better result than that of the worldwide auto market, which declined 20.7% during the same period.

Škoda Auto new car orders have increased in many markets: in Europe orders increased 27% with Germany, Austria, the Czech Republic, Slovakia and Poland doing particularly well. In China, growth is up about 14% compared to last year.

Customers have gone for the Škoda Fabia and Škoda Roomster models, particularly, those equipped with the peppy, fuel-efficient 1.2 litre engine. The environmental and scrappage programmes adopted in a number of European countries have also helped Škoda’s sales.

The introduction of the new Yeti at this year’s Geneva Motorshow was a highlight for Škoda, with consumers and the media alike buzzing about Škoda’s newest model. The launch and first deliveries of Yeti are planned for later in 2009. Yeti brings a fresh attitude to the crossover segment, combining the great attributes of a hatchback – compact size, fuel efficiency and low emission values - with the strengths of a 4x4 on- and off-road.

Škoda Auto’s Chairman of the Board, Reinhard Jung, comments: “The first quarter of 2009 was very difficult – the impacts of the worldwide economic crisis are having an effect on Škoda. But with our modern and environmentally friendly products, we have succeeded in expanding our market share in markets such as Germany and China.

“New car orders are also moving in a very positive direction for Škoda. Moreover, we have introduced numerous specific measures in order to secure Škoda’s economic situation over the long term and to come out of the current crisis stronger than before.

“Overall, the Škoda Auto Group was able to contribute an operating profit of €28.2 million to the Volkswagen Group’s first-quarter aggregate earnings. On the local balance sheet, the Škoda Auto Group’s operating profits reached CZK 787.4 million – significantly lower than in the previous year, but still positive. Cash flow from current transactions rose to CZK 6.5 billion (+30.1%).”

Holger Kintscher, Board of Directors Member for Finance and Economics, comments: “We know that 2009 will be particularly difficult for us, as well as for the entire automotive industry. The results we achieved for the first quarter did go beyond our forecasts, particularly due to the scrapping premium offered in certain countries. The prospects are still unclear and filled with substantial risks. However, I am convinced that through our profit improvement programme, we will succeed in sustaining our financial strength and stability and, even in this period of crisis, achieve a reasonable profit.”