VW in fast lane
February 24, 2012
Europe's top automaker, Volkswagen (VW), was able to more than double its net profit last year, company officials announced on Friday.
The firm booked net profit of nearly 15.8 billion euros ($21.2 billion) in 2011, up from 7.266 billion euros in 2010. After payments to minority shareholders, the bottom-line profit for last year was listed at 15.4 billion euros, compared with 6.83 billion euros the previous year.
The real headline-making news, however, was that for the first time in its history Volkswagen's sales in 2011 topped the eight-million unit mark. The company managed to sell 8.265 million vehicles, with sales rising in all of VW's markets, including Europe.
Volkswagen had already announced at January's North American International Auto Show in Detroit, USA, that it would breach the eight-million unit mark.
Shareholders rejoice
Worldwide deliveries in 2011 rose by 14.7 percent, while revenues increased by 25.6 percent to 159.34 billion euros.
Against the backdrop of its strong performance, VW said it would pay an increased dividend of three euros per ordinary share, adding that prefered shares would fetch 3.06 euros each.
Analysts warn, however, that VW may not keep the momentum going in the current cycle. They say that even a slight decline in net profit would not come as a big surprise, given the ongoing uncertainties in the European and US markets.
The forecasts do not include possible profits made by MAN. The Munich-based truckmaker only joined the Volkswagen group in November of last year.
hg/gb (Reuters, AFP, AP)