Despite a severe contraction of its European home market, Volkswagen today announced record earnings for 2012. The group delivered an after tax profit of €21.9 billion ($28.9 billion) up from €15.8 billion ($20.9 billion) in the preceding year.
The after tax result “includes the clearly positive effects from the final measurement of the put/call rights relating to Porsche as of July 31, 2012,” as Volkswagen says. However, an operating profit of €11.5 billion ($15.2 billion) isn’t half bad. Insiders expected a hit on the operating results due to alleged predatory dumping in Europe, but it wasn’t the case.
Maybe it was. Sales rose from €159.3 billion ($210.5) in 2011 to €192.7 billion ($254.6) in 2012. The operating profit on the other hand remained relatively flat, going from €11.3 billion in 2011 to €11.5 billion in 2012. As long as you can afford being a predator, go for it.
What is even more interesting is the guidance Volkswagen gave today: “Given the pressures resulting from the difficult environment the Volkswagen Group’s goal for operating profit is to match the prior-year level in 2013. Deliveries to customers and sales revenue are to increase year-on-year.“
|January – December||2012||2011||+/- (%)|
|Volkswagen Group (IFRSs):|
|Deliveries to customers||‘000 units||9,276||8,265||12.2|
|Vehicle sales||‘000 units||9,345||8,361||11.8|
|Sales revenue||EUR million||192,676||159,337||20.9|
|Operating profit||EUR million||11,510||11,271||2.1|
|Profit before tax||EUR million||25,492||18,926||34.7|
|Profit after tax||EUR million||21,884||15,799||38.5|
|Noncontrolling interests||EUR million||168||391||-57|
|Profit attributable to shareholders of Volkswagen AG||EUR million||21,717||15,409||40.9|