Volkswagen Said To Report Monster Profits This Week
Germany’s Hannoversche Allgemeine, usually well-informed in Volkswagen matters, got its hands on hot data: Volkswagen’s 2011 balance sheet , which will be presented to the Supervisory Board on Monday. According to the paper, Volkswagen more than doubled its annual profit to €16 billion ($21.4 billion.)
Not all of this will be free cash: The number contains unrealized profits from stock options in relationship to the Porsche takeover. Volkswagen stockholders can expect a dividend of €3 per share, says the paper. Stockholders probably expected a bigger share of the hefty profits. Unions also demand more money. Usually, 10 percent of the profits are bonussed-out to the workforce, but as “Volkswagen was never really affected by the crisis,” Volkswagen works council chief Bernd Osterloh wants “a healthy amount on top.”
According to the well-informed paper, the Supervisory Board will not be presented imminent plans of a final Porsche takeover. Volkswagen’s legal team has developed an intricate plan than allows a merger in a tax-efficient manner, however, Wolfsburg still is waiting for word from the tax authorities to see what kind of a share they want.
Also expecting more: The analysts. According to Reuters, analysts had expected a better 4th quarter. Quarterly operating profit was €2.29 billion ($3.05 billion), while analysts had forecast €2.38 billion. Shades of GM.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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After having a street race with a new Audi A7 (and winning), I became interested in the car so I popped into my local Audi dealer to check out the A6 and A7. I was shocked how much more interior space the A6/A7 offered me up front (rear leg space wasn't that great though compared to my SRT8). You compare the CLS and A7 - and I must say, I'd rather buy a CLS but, I'd probably take the A7 for practical reasons - not to mention the $15,000 difference. Audi seems poised to really rake it in. Maybe I should buy some of their shares.
"Germany’s Hannoversche Allgemeine, usually well-informed in Volkswagen matters, got its hands on hot data: Volkswagen’s 2011 balance sheet , which will be presented to the Supervisory Board on Monday. According to the paper, Volkswagen more than doubled its annual profit to €16 billion ($21.4 billion.)" Not to get all nitpicky, but the income statement is what would show VW's profits, not the balance sheet. @bigtruckseriesreview - where do you see a CLS/A7 reference in Bertel's post? Did you mean to comment on a different post?
BANK IT VW! Then get the hell to China while the prices are good to invest it.