Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  Volkswagen    VOW3   DE0007664039

VOLKSWAGEN (VOW3)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Volkswagen Raises Stake in Truck Maker MAN Above 75%

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/05/2012 | 05:05pm CEST

-VW keeps all options open for future truck alliance between MAN and Scania

-Power engineering unit to remain part of MAN

-MAN shares jump 8%

-Fitch says Volkswagen's diversification underpins decision to change ratings outlook to positive

(Adds analyst comment in 7th and 8th paragraphs, background and share price data)

 
  By Christoph Rauwald 
 

FRANKFURT--Volkswagen AG (>> Volkswagen AG) Tuesday tightened its grip on German truck maker and engineering firm MAN SE (>> MAN AG) by lifting its voting stake above 75%, marking the next step towards forging a truck alliance with Sweden's Scania AB (SCV-A.SK) to take on global market leaders Daimler AG (>> Daimler AG) and Volvo AB (VOLV-B.SK).

"This marks a further important milestone for achieving our joint goals in the commercial vehicles business," Volkswagen Chief Executive Martin Winterkorn said in a statement.

Volkswagen said it will be "putting every effort into leveraging synergies and substantial growth potential" in the group's commercial vehicles business.

News of Volkswagen's increased stake in MAN follows the announcement of a wide-ranging management reshuffle at the automotive group including changes at its truck-making units. Leif Ostling, the chief executive of VW's Swedish truck brand, Scania AB, will join Volkswagen's management board and succeed Jochem Heizmann as truck chief. Mr. Heizmann will take on a new management-board post responsible for Volkswagen's Chinese operations.

The truck business has emerged as a second pillar for Europe's largest car maker after it acquired majority stakes in MAN and Scania in recent years.

Volkswagen's diversfication of its portfolio has included Porsche sports cars and most recently Ducati motor bikes as well as a big sales push in China and more recently the U.S..

The group's business profile is "at the top end of the sector," said Emmanuel Bulle, an analyst at Fitch Ratings. The agency has raised its credit outlook for Volkswagen to positive from stable.

"Volkswagen's substantial cash pile and free cash flow generation provide the group with significant headroom in its ratings and should enable it to absorb further expected investment without impairing key credit metrics," Mr Bulle said.

Mr. Winterkorn said MAN will "retain its operational autonomy" while its power-engineering unit, which produces large diesel engines and other machinery, would remain "a solid part" of the Munich-based firm.

Under German stock market rules, investors have to disclose if they cross the 75% stake threshold. Volkswagen so far held a stake of just below 75% in MAN.

Volkswagen Chief Financial Officer Hans-Dieter Poetsch reiterated Saturday that the company is keeping all options open for the future structure of its truck alliance. This includes a so-called domination agreement under German stock market rules, which would give Volkswagen complete access to MAN's cash flow. A domination agreement requires a 75% voting majority at shareholder meetings.

"MAN and Scania can raise their profitability further through closer cooperation," Volkswagen said, adding that all shareholders "will benefit from the associated growth in value."

Mr. Poetsch said cost savings, derived in part from closer cooperation in purchasing and research and development, could exceed the initial target of 200 million euros a year.

MAN shares were 8.2% at 84.33 euros around 1416 GMT, making it the biggest gainer in the DAX30 bluechip index, which was up 0.1%. Volkswagen's preference stock, its most actively traded securities, were up 0.4%. Shares in Scania were 0.4% higher at 116.70 Swedish kronor.

-Write to Christoph Rauwald at [email protected]

Stocks mentioned in the article : Volkswagen AG, MAN AG, Daimler AG
Stocks mentioned in the article
ChangeLast1st jan.
AUDI AG 3.54% 818 Delayed Quote.6.14%
DAIMLER 0.03% 65.03 Delayed Quote.-8.18%
MAN -0.16% 96.05 Delayed Quote.0.84%
VOLKSWAGEN 2.66% 171.44 Delayed Quote.0.33%
VOLVO 0.26% 152.15 Delayed Quote.-0.62%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on VOLKSWAGEN
05:02pVOLKSWAGEN : VW reports higher quarterly sales, lower profit
AQ
02:52pVOLKSWAGEN : VW second-quarter profit to at least match year-ago result - CFO
RE
02:51pNew CEO declares Volkswagen on right path despite profit hit
RE
02:50pVW SECOND-QUARTER PROFIT TO AT LEAST : Cfo
RE
01:57pAuto bosses personally responsible for diesel fixes - German minister
RE
01:15pVOLKSWAGEN : MDE Secretary Grumbles, Attorney General Frosh Announce $33.5 Milli..
AQ
12:50pVOLKSWAGEN : New Volkswagen CEO Gets Off to a Strong Start -- 2nd Update
DJ
12:48pNew CEO declares Volkswagen on right path despite profit hit
RE
12:05pVOLKSWAGEN : Correction to Volkswagen 1Q Earnings Article
DJ
11:54aVOLKSWAGEN : 40-page journey back in time through the history of research at Vol..
PU
More news
News from SeekingAlpha
04/25Buzz from the Beijing Motor Show 
04/24Volkswagen to spend heavily in China on tech 
04/23Appeals court nixes Trump delay of auto efficiency standards penalty 
04/23Volkswagen to return to U.S. bond market 
04/21STOCKS TO WATCH : Earnings Blockbusters And Trump Talks Drug Prices 
Financials (€)
Sales 2018 240 B
EBIT 2018 18 092 M
Net income 2018 13 254 M
Finance 2018 23 986 M
Yield 2018 3,28%
P/E ratio 2018 6,32
P/E ratio 2019 5,98
EV / Sales 2018 0,25x
EV / Sales 2019 0,23x
Capitalization 84 762 M
Chart VOLKSWAGEN
Duration : Period :
Volkswagen Technical Analysis Chart | VOW3 | DE0007664039 | 4-Traders
Technical analysis trends VOLKSWAGEN
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 202 €
Spread / Average Target 21%
EPS Revisions
Managers
NameTitle
Herbert Diess Chairman-Management Board
Hans Dieter Pötsch Chairman-Supervisory Board
Martin Hofmann Head-Group Information Technology
Peter Mosch Member-Supervisory Board
Bernd Osterloh Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
VOLKSWAGEN0.33%103 203
TOYOTA MOTOR CORP-1.81%213 847
DAIMLER-8.18%84 877
BAYERISCHE MOTOREN WERKE2.81%72 137
HONDA MOTOR CO LTD-3.57%62 687
GENERAL MOTORS CORPORATION-7.03%53 122