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

Like it or not, Chevrolet may soon be offering a cheaper Camaro in hopes of competing with Dodge Challenger and Ford Mustang GT. Apart from the less expensive trim, the...
by - August 17, 2017
Recently, Porsche revealed a new Macan Turbo wearing a Performance Package and a unique Porsche Motorsport themed paint. At first look, it will remind you of the 919 Hybrid and...
by - August 17, 2017
The BMW M1 will be one of the most exclusive cars that will be showcased at the upcoming 2017 Pebble Beach Concours d'Elegance, alongside many other extravagant models. Firstly, there...
by - August 17, 2017
Aston Martin Vanquish Zagato makes its debut with a total of four variations including the Speedster and the Shooting Brake trims. As part of the limited edition model, the company...
by - August 17, 2017
Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 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