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VW: Operating Profit Won’t Grow This Year
Volkswagen AG's operating income rose only 2% to €11.5 billion ($15.1 billion) last year.
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Volkswagen AG's operating income rose only 2% to €11.5 billion ($15.1 billion) last year. Citing tougher competition and an uncertain economic climate, the company predicts no further improvement this year.
Net earnings surged 41% year over year to €21.7 billion ($28.6 million) in 2012. More than half the improvement came from consolidating its Porsche AG and MAN SE acquisitions.
VW's full-year revenue jumped 21% from 2011 to €192.7 billion ($253.6 billion) last year. Group volume climbed 12% to a record 9.28 million vehicles, nearly one-third of them sold in China.
The company proposes a 16% boost in common stock dividends for 2012. It also has revamped its compensation policy to cap bonuses for top executives and limit individual performance bonuses.
As a result, Chairman Ferdinand Piech's 2012 compensation declined €3 million ($4 million) to total €14.5 million ($19.2 million). Combined earnings of the management board's nine members, including CEO Martin Winterkorn, fell 21% to €41.5 million ($54.9 million).
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