Volkswagen breaks old records making 2014 a profitable year

Volkswagen managed to achieve its 2014 target despite major economic challenges and sustained its growth throughout the year.

With sales revenue of EUR 202.5 billion (previous year: EUR 197.0 billion) and an Operating profit of EUR 12.7 billion (EUR 11.7 billion), the Group scored high on the graph breaking previous year’s record. This was announced by Volkswagen Aktiengesellschaft this Friday on conclusion of the Supervisory Board meeting.

The operating margin also improved to 6.3 percent ( previously 5.9 percent), reaching closer to its set target of 5.5 to 6.5.

The Group’s profit before tax increased to EUR 14.8 billion (EUR 12.4 billion), while the return on sales before tax rose from 6.3 percent to 7.3 percent. Profit after tax came in at EUR 11.1 billion (EUR 9.1 billion). Net cash flow in the Automotive Division increased by EUR 1.7 billion to EUR 6.1 billion. Net liquidity in the Automotive Division rose to EUR 17.6 billion (EUR 16.9 billion) as of year-end 2014.

So the good news that follows this holistic growth is, the Board of Management and the Supervisory Board will be proposing to the Annual General Meeting to increase the dividend by 20 percent to EUR 4.80 (EUR 4.00) per ordinary share and EUR 4.86 (EUR 4.06) per preferred share.

2015 FORECASTS

2015 is again going to be an tough year for the Group and there is no guarantee that 2015 will be a successful year – either for the industry or for the Volkswagen Group

Treats

Passive growth scenario in regions outside China, continuing political uncertainty, strong currency fluctuations, interest rate and exchange rate volatility, fierce competition and challenging environments in markets such as Russia and Brazil present major challenges for the Volkswagen Group this year as well.

However,  the Board of Management expects Group deliveries to increase moderately in full-year 2015 and, depending on economic conditions, Group sales revenue to increase by up to 4 percent year-on-year. In terms of the Group's Operating profit, Volkswagen is forecasting an operating return on sales of between 5.5 percent and 6.5 percent. TheGroup also look forward to expanding its products and providing more choices to its customers. Nevertheless, constant monitoring of economic trends in Latin America and Eastern Europe will be required in the Commercial Vehicles/Power Engineering Business Area.

“Our goal is not only to increase our volumes, but also to lift sales revenue and earnings again”, said Chief Financial Officer Hans Dieter Pötsch, adding that “The continuing high liquidity and our robust financial position give us the necessary flexibility to successfully implement our Strategy 2018”. The Annual Media Conference and Investor Conference will be held in Berlin on March 12, 2015.

Source: Autobei