Czech Skoda posts record January sales; bodes well For economic rebound

Dow Jones Newswires (Prague) - Skoda Auto AS, the Czech unit of Volkswagen AG (VOW.XE, VLKAY), said Friday its January sales rose 10% on the year to 75,400 cars, an all-time-high in this month for the 117-year-old company.

The sales record at Skoda Auto, the bellwether of the Czech industrial output and the country's key exporter, also reinforces signs of an export-driven recovery of the Czech economy, centered on the manufacturing of automobiles, car parts and electronics.

Western European markets were key drivers of Skoda Auto sales in January, rising 11% on the year to 29,300 units. Sales in China rose 1% to 20,800. Markets elsewhere in Asia, Russia and Eastern Europe accounted for the remainder of Skoda Auto sales in January.

The Skoda Auto performance may bode well for preliminary gross domestic product growth data for the fourth quarter due Feb. 15. The average forecast of six analysts polled by Dow Jones Newswires sees a rebound for the Czech economy with growth of 0.1% on the quarter, compared with a quarterly contraction of 0.1% in the third quarter. Analysts in the same poll expect the annual GDP growth slowing to 0.8% from a 1.2% annual expansion in the third quarter.