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VW’s Quarterly Profit Climbs 18%
Volkswagen AG's earnings before taxes and interest advanced to about €3.1 billion in October-December 2013 from €2.6 billion in the same period a year earlier.
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Volkswagen AG's earnings before taxes and interest advanced to about €3.1 billion in October-December 2013 from €2.6 billion in the same period a year earlier. Surging sales by the group's Audi and Porsche units offset higher operating costs.
Fourth-quarter revenue grew 6% to €51.3 billion. Unit sales rose 6% to 1.88 million vehicles.
For the full year, VW's operating profit advanced 2% to a record €11.7 billion. Net income plunged 52% to €3.1 billion compared to 2012, when earnings were boosted by the consolidation of Porsche AG's results.
VW's vehicle deliveries in 2013 grew 5% to 9.73 million, and revenue climbed 2% to €197 billion. Net liquidity jumped to €16.9 billion from €10.6 billion in 2012. VW says it plans to hike its dividend to €4 per share from €3.50.
The group, whose operating profit margin was 5.9% in 2013, predicts this year's margin will be between 5.5% and 6.5%. VW says its challenges include fierce competition, exchange rate volatility and fluctuations in the cost of raw materials.
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