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The Skoda brand was one of the few manufacturers last year that, despite very difficult conditions on car markets, achieved a sales record. Overall it supplied its customers with 684,226 cars, which is 1.4% more than in 2008.

Strong growth on the car market in China, where 122,556 cars were sold (+106.7%) was primarily behind the increase in deliveries. This was enhanced by a sales record on the German market, on which Skoda Auto, thanks to government support in the form of “scprappage programs”, sold 162,328 cars ( +44.3%).

The best-selling models were the Octavia with 273,590 cars (+2.4%) and the Fabia with 264,173 cars

(+7.1%). The largest percentage increase in comparison with the previous year was 73.7% to a total of 44,548 cars by the Superb model series. The first Skoda vehicle in the SUV segment—the Skoda Yeti—led to a lot of interest from customers. From last September, when the Yeti was officially launched on the market, until the end of the year a total of 11,018 cars were sold.

The economic results of the Skoda Auto group were significantly influenced by the continuing global economic and financial crisis and the fall in total markets. The Group’s revenues reached CZK 187.9 bn. and therefore fell by 6.2% in comparison with the previous year. The revenues were generated by cars (85.6%), original parts and accessories (8.1%), deliveries of parts to Volkswagen group companies (4.6%) and revenues on other goods and services (1.7%). The operating profit was CZK 5.9 bn. (-56.5%) and the profit before tax was CZK 4.7 bn. (-64.8%).

As far as concerns sales, relevant for the operating profit (i.e. excluding deliveries to customers in China), the indicator fell in comparison with the previous year by 74,000 cars or 11.8%. The fall in the main financial indicators was, in addition to falling sales, also caused by a higher share in the sale of small cars with lower margins and measures to support sales. Despite the fall in results, the Group managed to achieve an increase in the operating cash flow by more than 100%. Net liquidity experienced a marked increase and in comparison with 2008 rose by 52.4% to CZK 29.6 bn. The Group’s balance sheet investments were CZK 11.7 bn. (-19.5%). Investment activities were centered on product investments (Skoda Yeti and Skoda Superb Combi).

Skoda Auto remained the most important exporter from the Czech Republic with an approximately 7% share in the country’s total exports.

“As expected to expectations, 2009 was even more unfavourable for Skoda Auto than the already problematic 2008. Unfavourable conditions on car markets, increased competitive and price pressure, in particular in Eastern Europe, and a fall in the overall markets relevant for us had a marked influence on the results. The CZK’s volatility was also a burden on us again. Thanks to thorough cost discipline and the “Scout” economy programme to improve the results, we remained markedly profitable. By achieving a high degree of liquidity, we managed to maintain our financial strength and stability,” said Holger Kintscher, the member of the Skoda Auto board of directors for commercial affairs.

“The Skoda brand managed to achieve a good result in the crisis year of 2009. Thanks to sales successes in Germany and China, we managed to achieve a further sales record. Skoda’s timely engagement in growth regions is now paying off. We further extended our foreign activities in 2009 by starting complete car production in Kaluga, Russia, and Pune, India. We strengthened our production programme even more in targeted fashion using the Skoda Yeti, Skoda Superb Combi and Skoda Octavia Greenline and LPG models. At the start of 2010 we comprehensively renewed our class of compact cars in the form of the Fabia and Roomster models. We were hereby responding to an increased demand for compact cars with low consumption. The Fabia RS, Fabia Combi RS and Fabia Scout models are new in the program for the product lines of compact cars. Skoda now has a very modern and attractive product pallet.  This entitles us to look to 2010 with optimism,” said Chairman of the Skoda Auto Board of Directors Reinhard Jung summarizing current developments for the Skoda brand.