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VW Predicts Flat Operating Profit This Year
Volkswagen AG's operating earnings rose only 2% to €11.5 billion last year.
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Volkswagen AG's operating earnings rose only 2% to €11.5 billion last year. Citing tougher competition and an uncertain economic climate, the company predicts no further improvement this year.
Revenue jumped 21% year on year to €192.7 billion in 2012. Group volume climbed 12% to a record 9.28 million vehicles, nearly one-third of them sold in China.
VW's full-year net earnings last year surged 41% from 2011 to €21.7 billion. More than half the improvement came from consolidating its Porsche AG and MAN SE acquisitions.
The results prompted the company to propose a boost of 16% in the annual dividend to €3.50 per common share.
VW also reports that cash flow from operations dropped 5% to €16.2 billion in 2012, and net automotive liquidity shrank 38% to €10.6 billion. The company will release full financial results on March 14.
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