It is comical to see the same warning repeated that the next year would be difficult, as VW did in 2011 and 2012. The Volkswagen Group began 2014 with a robust +6.5% rise in deliveries, at 798,100 compared to January 2013 of 749,500.
Volkswagen Group says its 2013 operating profit rose to €11.7 billion, above the record of €11.5 billion in 2012, which topped the 2011 record of $11.3 billion. Vehicle sales were 9.731 million, a plus 4.9% increase. All the successive records took place during the agonizingly slow recovery from the financier caused Great Recession.
A combination of new products, technology, acquisitions – Porsche, Ducati and MAN – and plant expansions especially in China, continues to give credence to VW’s announced intention to be the world’s largest automaker by 2018. It is now in third place behind Toyota and General Motors, so the Big Three are now from three different continents.
With sales revenue of €197.0 billion (2012 €192.7 billion), VW Group’s operating profit of €11.7 billion exceeded the record prior-year figure €11.5 billion.
It is comical to see the same warning repeated that the next year would be difficult, as VW did in 2011 and 2012 with almost the same language. The Volkswagen Group began 2014 with a robust +6.5% rise in deliveries, at 798,100 compared to January 2013 of 749,500.
“Despite the difficult competitive environment, we once again won over customers around the world with our products. We met and even exceeded our goals for 2013,” said Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg on Friday.
“We expect that the Volkswagen Group will moderately increase deliveries to customers year-on-year in 2014 in a still challenging market environment.
“Challenges for the Volkswagen Group will come from the difficult market environment and fierce competition, as well as interest rate and exchange rate volatility and fluctuations in raw materials prices. The modular toolkit system, which we are continuously expanding, will have an increasingly positive effect on the Group’s cost structure. Depending on the economic conditions, we expect 2014 sales revenue for the Volkswagen Group and its business areas to move within a range of 3% around the prior-year figure.
“In terms of the Group’s operating profit, we are expecting an operating return on sales of between 5.5% and 6.5% in 2014 in light of the challenging economic environment, and the same range for the Passenger Cars Business Area.”
The VW Board of Management and the Supervisory Board will be proposing at the Annual General Meeting to increase the dividend to €4.00 (€3.50) per ordinary share and €4.06 (€3.56) per preferred share. After adjustment a one-time effect on profits from 2012, this is an increase in the distribution ratio from 17.8% to 20.6%. VW’s medium-term goal is 30%.
See:
- Toyota Ousts GM from Global Auto Sales Leadership. VW Third
- Volkswagen Group Posts Record Profit of €11.5 Billion in 2012
- Volkswagen Group Posts Record 2011 Results – €11.3 billion
