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.
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By GlobalDataVW 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.
