Volkswagen Group boosted full year 2011 operating profit 59% to a record EUR11.3bn from EUR7.1bn.
In a preliminary statement ahead of its 12 March financial results press conference, the automaker said 2011 profit before tax rose to EUR18.9bn helped by one-off gains from equity-accounted investments and from put/call rights related to Porsche Zwischenholding GmbH. After-tax profit was up to EUR15.8bn from EUR7.23bn in 2010 on revenue up 25.6% to EUR159.34bn.
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The management board has recommended an increase in shareholders dividend to EUR3.00 per ordinary share and EUR 3.06 per preferred share.
Full-year vehicle deliveries rose 14.7% to top the 8m mark for the first time at 8.3m. PProduction rose 15.5% to 8.5m units worldwide. Worldwide employment was up 26% to 502,000.
However, a decline in fourth-quarter operating profit suggested slower growth at VW as Europe’s auto market heads for what is expected to be its fifth-straight year of decline amid the euro-zone’s debt crisis. Analysts told the Wall Street Journal (WSJ) fourth-quarter margins were possibly softer than expected due to costs for implementing a new modular technology.
The company didn’t provide fourth-quarter figures in its preliminary earnings report but calculations show quarterly operating profit slipped to EUR2.29bn from EUR2.32bn in Q4 2010, the WSJ said.
VW sales chief Christian Klingler recently cautioned that economic turmoil would make 2012 a “challenging” year, particularly in Europe.
The automaker’s preliminary results were published earlier than expected after a German newspaper reported the data.
