The Volkswagen Group improved its earnings strength again in 2014 and continued along its qualitative growth path despite major economic challenges. With sales revenue of EUR202.5bn (US$226.62bn) (previous year: EUR197bn), up 2.8%; and an operating profit of EUR12.7bn (EUR11.7bn), the group generated new record highs.
Operating margin improved to 6.3% (5.9%), reaching the upper end of the forecast range of 5.5% to 6.5%. Groups profit before tax increased to EUR14.8bn (EUR12.4bn), while the return on sales before tax rose from 6.3% to 7.3%. The equity-accounted profit of the Chinese joint ventures exceeded the high prior-year figure but was not included in the group’s sales revenue and operating profit.
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“We can look back on the past fiscal year with satisfaction: despite the difficult economic environment, we achieved our goals for 2014. At the same time, our forward-looking efficiency programme ‘Future Tracks’ has laid the groundwork that will enable us to continue our successful trajectory with all our strength”, said chairman Martin Winterkorn.
Profit after tax came in at EUR11.1bn (EUR9.1bn).
Group deliveries are expected to increase moderately in full year 2015 and, depending on economic conditions, group sales revenue to increase by up to 4%. Volkswagen is forecasting an operating return on sales of between 5.5% and 6.5% in light of the challenging economic environment.
“Given the subdued growth prospects in regions outside China, there is no guarantee that 2015 will be a successful year – either for the industry or for the group. Continuing political uncertainty, strong currency fluctuations and tough environments in markets such as Russia and Brazil present major challenges for the group this year as well. In light of this, the scenarios underlying our forecast are based on conservative assumptions. Nevertheless, our goal is not only to increase our volumes, but also to lift sales revenue and earnings again”, said CFO Hans Dieter Pötsch.
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