VDL BUS & COACH INCREASES TURNOVER BY 11 MILLION EURO
VDL Groep in Eindhoven keeps on growing. Over the first six months of 2018 the group recorded a combined turnover of 3.1 billion euros, which is an increase of 29% compared with the first six months of 2017 (2.4 billion euros). Turnover in the Bus division increased from 245 million euros for the first six months of 2017 to 256 million euros over the same period this year. The order portfolio has increased too, from 228 million euros at the end of 2017, to 281 million euros as per mid 2018.
Though the turnover increased VDL Bus & Coach ended the first six months of 2018 with a loss. VDL explains this by increased investments for the successful strategy on electric vehicles, for which lucrative orders have been won recently. The electric truck, which is launched with DAF Trucks in May 2018, offers new opportunities for growth too. Also VDL Bus & Coach invested significantly in the development and expansion of markets, such as Spain and Scandinavia.
For the VDL Groep in total the first six months of 2018 showed an increased operating profit by 3 million euros in comparison with the same period last year. The financial result after taxes for the first six months was lower than the same period a year before, being 69 million euros in comparison with 75 million euros. This difference is primarily due to the possibility to profit from several sources of extraordinary income. The total order portfolio (excluding the Car Assembly division) has grown across the board, from 769 million euros at the end of 2017, to 957 million euros in mid 2018. In the space of just one year, the number of individuals employed by VDL Group increased by 11 percent to 17,238 employees in mid 2018.
Not all the VDL divisions contributed to the growth. At Finished Products the turnover decreased to 272 million euros from 291 million euros in the first six months of 2017 due to completion of a relatively lower number of projects in comparison to the same period last year. However the order portfolio increased from 139 million euros at the end of 2017 to 217 million euros as per mid 2018. This division finished the first six months profitably and prospects for the second half of the year are positive. The turnover at the division Subcontracting increased to 668 million euros from 564 million euros in the first six months of 2017. Car Assembly realized a turnover of 1,882 million euros to 1,326 million euros in the first six months of 2017. This growth in turnover has been facilitated by increased production of the Mini and BMW X1 models for the BMW Group. VDL Groep has high expectations for the second half of 2018. The total turnover achieved by VDL Groep for the year as a whole will be more than 6 billion euros.