Several automakers reported monthly or quarterly results this morning. Let’s start:
Toyota: Sales down, but profits up
TOKYO — Toyota Motor reported a 17% rise in first-quarter profit on Thursday as cost cuts and a weaker yen offset lower sales and a drop in domestic production.
The world’s top-selling automaker said operating profit for the three months through June totaled 1.3 trillion yen ($8.70 billion), matching the average of six analyst estimates compiled by LSEG. But with growth the weakest in seven quarters, the results disappointed investors who had bet the automaker would go out of business. Shares of Tokyo-listed Toyota, which fell more than 5% before the earnings were released, extended their losses and fell nearly 9% on Thursday.
Toyota has posted record profits that have boosted its stock price, but the outlook has been complicated by a tough market in China and the consequences of a certification scandal.
Toyota and luxury retail Lexus Auto brands fell 2% in the quarter, with gasoline-electric share hybrids in sales that reached about two-fifths. Toyota, a pioneer in hybrid technology, has benefited from the slowing demand for electric vehicles in markets such as the United States.
The automaker maintained its forecast of 4.3 trillion yen in profit for the full year, compared with an average of 5.3 trillion yen estimated by 18 analysts.
VW: Mixed results
Volkswagen The group reported mixed results and a bleak outlook, reflecting the wider challenges facing large multinational automakers as they grapple with cost-cutting and a changing market where electric vehicle adoption is erratic.
Volkswagen, which brands such as its Audi, Porsche, Bentley and others in its portfolio — reported second-quarter revenue of €83.339 billion ($90.0 billion) versus €81.697 estimates, up 4.1% from a year ago. Operating profit came in at €5.464 billion ($5.90 billion) versus €5.486 billion, a slight miss compared to estimates but down 2.4% from the year-ago period.
Operating returns, or operating margins, fell to 6.6% in the quarter from 7% a year ago, though higher than the overall margin of 6.3% in the first half. Volkswagen said operating results were affected by unplanned items such as severance payments at VWwith margins declining due to higher fixed costs, the closure of a gas turbine company and the winding down of VW Bank in Russia.
“A margin of 6.3 percent after six months is below our ambitions and potential, given our great vehicle offering, our brand portfolio and our global footprint,” said Arno Antlitz, CFO & COO of Volkswagen Group, in a statement. “However, we need to make significant efforts on the cost side in the second half and beyond to achieve our targets.”
VW saw overall growth in its sales regions in North America and South America, nearly offsetting losses in regions such as China, the company said. Global vehicle deliveries in the second quarter fell 3.8% to 2.244 million, with sales boosted by financing activities and reflecting a better product mix.
The German automaker has also recently used partnerships to reduce costs. In the U.S., Volkswagen announced it will work with Rivian to create next-generation software-defined vehicles (SDV) that could be used in both companies’ future electric vehicles, with Volkswagen investing up to $5 billion through 2026.
Recently, Volkswagen has reversed its position and said that it… ID.7 EV sedan not coming to the US
Ferrari: ‘On the peaks of heaven’
MILAN — Higher-end models such as the Daytona SP3 and growing buyer demand for personal touches helped Ferrari beat expectations for second-quarter results on Thursday and raised full-year expectations.
The Italian company said it now reported adjusted earnings before interest, taxes and depreciation and depreciation (EBITDA) will rise to at least EUR2.50 billion ($2.70 billion) this year, compared with a previous forecast of at least EUR2.45 billion.
“Our net sales and profitability grew by double digits, driven by the enrichment of the product mix and increased demand for personalizations. As a result, we have revised our 2024 guidance upwards,” CEO Benedetto Vigna said in a statement.
Porsche, on the other hand, last month cut its sales and profit forecasts due to an unexpected shortage of aluminum alloys, sending its share price plummeting.
“Ferrari won on virtually every front today,” Bernstein analysts said in a note. “It reinforces our claim that there is only one Ferrari …. that is on top.”
Ferrari’s adjusted EBITDA rose 14 percent to 669 million euros in the second quarter, slightly above the average analyst forecast of 650 million in a Reuters survey.
The company, known for its prancing horse logo, also generated €121 million in cash in the quarter.
Pricing power contributed €122 million to quarterly profit, the company said, boosted by demand for the €2 million, 12-cylinder Daytona SP3, as well as a “few sales” of the limited-edition, track-only €5.1 million 499P Modificata.
Customer demand for personalization — both inside and outside the car — also boosted results, along with a strong performance in the Americas. In 2023, personalizations accounted for around 19% of Ferrari’s €6 billion in revenue, mainly related to paint, liveries and the use of carbon.
BMW: Hit by China, Helped by Electric Cars
BERLIN — BMW On Thursday, it reported a lower-than-expected profit margin in its key automotive segment in the second quarter, weighing on its shares as increased competition and weaker demand in China weigh on the sector.
The German carmaker’s earnings before interest and taxes (EBIT) in the automotive segment fell to 8.4% from 9.2% in the same period last year, falling short of the 8.7% analysts had expected, according to a consensus drawn up by the company.
BMW and its rivals are under pressure in their key market of China, where local automakers are gaining market share with cheaper cars. electric vehiclesforcing its European rivals to cut prices. The Munich-based automaker saw a 4% drop in Chinese sales in the first six months of the year, but outperformed Volkswagen and Mercedes.
BMW, which invested heavily in model renewals and thus also suppressed the results of the second quarter, is seeing strong demand for its fully electric models, which sets the company apart from its competitors.
“We believe that e-mobility remains the most important drive technology of the future and our most important growth driver,” CEO Oliver Zipse said in a speech to investors, adding that BMW is the world’s third-largest manufacturer of electric cars.
BMW and its smaller brands Mini and Rolls Royce increased sales of pure electric cars by a quarter to more than 190,000 in the first half of 2024.
Carvana beats forecasts as used car prices fall
Shares of Carvana rose nearly 15% a day after the used car The retailer expects annual core profit to beat Wall Street estimates as more car buyers turn to online shopping.
Baird analyst Craig Kennison said the company’s story holds promise for a bright future and Carvana is “well positioned” to gain market share as auto shopping increasingly moves online.
Carvana has taken a series of measures over the years, including scaling back car purchases for its inventory, halting some hiring and halting share buybacks, to deal with volatile demand for vehicles.
The company best known for its vehicle vending machines said Wednesday it expects adjusted EBITDA of between $1 billion and $1.2 billion for 2024, above analyst estimates, according to data compiled by LSEG.
Demand for used cars has increased in recent months, but retailers are struggling to produce enough due to the overall drop in used car prices.
According to data from Cox Automotive, the average asking price for a used car was $25,251, down 7.6% from a year earlier.
Carvana is expected to add about $4 billion to its market value if profits continue. Shares of the once-troubled auto retailer have more than doubled so far this year.
Contains material from Yahoo Finance.