$29 Billion, Net: Volkswagen Declares Record Profit

Bertel Schmitt
by Bertel Schmitt
29 billion net volkswagen declares record profit

Winterkorn gets honorary PhD. He deserves it

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 – December20122011+/- (%)Volkswagen Group (IFRSs):Deliveries to customers‘000 units9,2768,26512.2Vehicle sales‘000 units9,3458,36111.8Production‘000 units9,2558,4949EmployeesDec. 31549,763501,9569.5Sales revenueEUR million192,676159,33720.9Operating profitEUR million11,51011,2712.1Profit before taxEUR million25,49218,92634.7Profit after taxEUR million21,88415,79938.5Noncontrolling interestsEUR million168391-57Profit attributable to shareholders of Volkswagen AGEUR million21,71715,40940.9
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  • NorthwestT NorthwestT on Feb 22, 2013

    Maybe now those guys can get some suits that fit. And yeah, what Buickman said.

  • JSF22 JSF22 on Feb 24, 2013

    You sure can get a lot of honorary degrees just by saying "yes" to Ferdinand Piech. Which, as it has turned out, has been a pretty good thing for Winterkorn to do. Piech inherited a company that was really only good at creating jobs for Germans and turned it into what is by nearly any measure the most successful automobile manufacturer the world has known, often by building incredibly good cars. If that takes them to the top in volume, great ... but I think we've seen plenty of examples of what chasing volume for its own sake accomplishes.

  • Inside Looking Out The next 4Runner will be BEV.
  • The Oracle This is a proper Italian red sauce turd.
  • Carson D This isn't a notice of a wait time for 4Runner fans. This is a deadline for the opportunity to buy one new before they're gone. Whatever comes next, there is no possible way that it will be as good at doing 4Runner things as what is available today.
  • Bkojote There's a lot "just right" with the current 4Runner, and having spent time in more contemporary equivalents for road trips, I completely understand why they sell a ton of these.Here's some topics that aren't super common among 4runner owners - excessive carbon buildup in the engine after 40,000 miles (Audi/VW), bent valves (Bronco) , failed oil coolers (Jeep), cracked engine blocks (Jeep), dead vehicles from OTA updates (Chevy Colorado), being stranded due to opening the door too many times (Defender), malfunctioning engine sensors (Defender, VW), dead batteries due to electrical system malfunctions (Jeep), unusable defoggers (Jeep), waiting for seat heaters to boot up (Subaru), randomly catching fire (Kia/Hyundai), crappy build quality (Ford, Tesla).The interior feels solid and rattle free, and everything feels substantial in the way a Jeep Grand Cherokee or Kia Telluride does not. 14 year run means accessories are plentiful and well sorted. The control inputs from the radio to heated seats to climate control work better than 99% of the cars you can buy new at this point and are dead simple and ergonomically satisfying. Even dynamically (I drove a model with the KDSS system to be fair) it is a surprisingly composed vehicle on mountain roads- it's far more civilized than a Bronco or Wrangler, and hell, it was far more pleasant than the past two peastant-grade Benz crapmobiles I've been in.So I get it- car journalist rags whine about how overly complicated and tech-heavy modern vehicles are while their substance is cost cut, but here's the literal definition of 'don't fix it if it aint broken.' . It's a trusty Ford Econoline in a world of craptastic Ram ProMasters.
  • Frank Sounds like they dont want to debut it at the same time as the new Land Cruiser, which is probably smart. The new 'runner is ready to go I am told, so there's a reason for this delay.