SEAT Reports Improved Profits as a Result of Increased Exporting
10 Apr, 2012, 07:53 ET
MILTON KEYNES, England, April 10, 2012 /PRNewswire/ --
SEAT has announced that internationalisation enabled it to weather the storm affecting the Spanish market in 2011 and forge ahead with its plans for growth and profitability. SEAT passed the 5 billion euros mark in terms of revenues (5,049 million, 8.3% more than the previous financial year), thanks to an increase in exports and the market success of its products.
The difficult economic situation didn't prevent the Volkswagen Group brand from devoting 555 million euros (7% up on last year) to investment and R&D. In spite of this, SEAT improved its operating account by almost 100 million euros (30%), ending 2011 with a result totalling -232 million euros compared to the -330 million of the previous financial year. Earnings after tax improved by 43 million (41.3%) to -61 million euros.
During the presentation of the company's results for 2011 SEAT's President James Muir said: "SEAT has delivered on its commitments. We have improved all our indicators and this year we want to continue in the same direction."
In 2011 SEAT delivered 3.1% more vehicles (350,009 units) worldwide, in spite of the Spanish market crisis, and at year's end it was car registrations leader for the second year running in Spain. The company made up for the downturn in its home market by an 11.4% increase in exports, which now account for almost 80% of total deliveries.
The upturn was particularly significant in Germany (+20.9%), France (+14.6%), the United Kingdom (+9.6%) and Italy (+6.5%). SEAT increased its market share in the European Union, and also sold 35.4% more in Mexico, plus 35.6% more in North Africa and the Middle East.
Holger Kintscher, SEAT executive Vice-president for Finances and Organization remarked on the improved profits, saying: "Our company is following the plan laid out to achieve profitability. We have continued to increase earnings and optimise costs, and this has enabled us to improve our results. We have also created more than 1,000 employees and invested 555 million euros to consolidate our future. We are on the right track."
In 2011 SEAT broadened and updated its product range with the launch onto the Spanish market of the Mii, the brand's new city car, signalling its return to the city cars segment and greater market coverage. The Mii was joined by the revamped Exeo and the Alhambra 4, extending the range of SEAT's award-winning MPV with a four-wheel drive version.
Thanks to the success of SEAT products and the start-up of the Audi Q3, the company increased production at Martorell, its main production facility, by 5.5%, totalling 353,420 vehicles. Both elements enabled SEAT to become one of Spain's major generators of employment. SEAT also finalized a new, more modern and flexible collective agreement, partially linking pay to company results, as well as paving the way for the creation of yet more jobs.
The new city car Mii and the new Ibiza, the brand's and Spain's best-selling car, will be joined after the summer break by the new Toledo and the 5-door Leon.
SEAT is the only company in its sector with the capacity to design, develop, manufacture and market cars and car accessories in Spain. A member of the Volkswagen Group, the multinational has its headquarters in Martorell, near Barcelona, and exports approximately 75% of its production to 72 countries.
SEAT is the market leader in Spain and, in 2010, reached a turnover amounting to 4.7 billion euros, with total sales of 339,500 vehicles.
All of SEAT's new cars purchased from an authorised SEAT dealer in the United Kingdom qualify for a three-year car warranty consisting of a two-year unlimited mileage manufacturer's warranty and a third year warranty with a 60,000 miles limitation. Warranties for used cars will depend on the dealership.
Head of Press and Public Relations
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