Volkswagen forecast operating profit would rebound this year

Article by Christian A., on August 25, 2010

Volkswagen AG's goal to overthrow Toyota Motor Corp.'s supremacy in the automotive industry may be within reach. Amid increasing sales volumes, VW has predicted that its operating profit would make a rebound this year. After the worse-than-expected earnings decline for 2009, VW's preferred shares dropped by 2%.

In a regulatory filing ahead of scheduled results on March 11, VW said that the Group's sales revenue and operating profit for 2010 are seen to surpass the prior-year figures despite a shift in volumes between the markets. Interest and exchange rate volatility will remain a drag on profit.

Last year, VW's operating profit plunged 71% to 1.86 billion euros ($2.53 billion). It clearly missed the average estimate of 2.06 billion from a Reuters poll of 13 analysts.

Backing out quarterly results from the last interim figures, Volkswagen gained 337 euros in the last quarter of the past year, providing only a 1.2% operating margin.

As the company's voting shares are tightly held by the Porsche and Piech families, Qatar and its home Germany state of Lower Saxony, it suggested cutting its dividend by 17% to 1.66 euros per preferred share despite higher net profit under German GAAP.

VW has a plan to increase fresh equity by issuing up to 135 million new preferred shares. As a result, the capital of that stock class more than doubles. VW is doing this in hopes to acquire the Porsche brand of sports cars and the Porsche Holding dealership group worth a combined 16 billion euros in equity and debt.

Topics: vw, profit

If you liked the article, share on:

Comments

Recommended

Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
BMW dealers have a problem, a good problem. The demand for the 2017 BMW 5 Series is very high, they cannot attend to all the customers. But actually, supplies are...
by - April 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries