VW Bullish on 2017

Volkswagen AG predicts its revenue this year could rise as much as 4% above last year’s record €217 billion ($231 billion) as unit sales slightly exceed the 10.3 million vehicles sold by the group in 2016.

VW notes that its namesake brand, hurt by continuing fallout from its diesel emission cheating scandal, reversed a fourth-quarter operating loss of €127 million in 2015 with a €625 million ($664 million) profit in the same period last year. VW brand revenue slipped 1% to €1.9 billion.

VW has so far set aside €22.6 billion ($24 billion) to cover fines, penalties and compensation for rigging 11 million of its diesel-powered cars to evade pollution standards worldwide.

The group’s Skoda brand saw its operating profit jump 31% to €1.2 billion ($1.3 billion) last year. Operating return on sales climbed to 8.7% from last year’s 7.3%. Revenue for the unit surged 10% to €13.7 billion.

SEAT reversed a €10 million loss in 2015 with an operating profit last year of €153 million ($163 million). The unit’s revenue gained 4% to €8.9 billion. The brand’s operating return on sales was 1.7%.

Audi’s operating profit shrank 6% to €4.8 billion last year. Sales were virtually flat at €59.3 billion. Porsche’s operating profit zoomed 14% to €3.9 billion, as revenue grew 4% to €22.4 billion. The unit’s operating return on sales climbed to 17.4%, up 1.6 points from 2015.