$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 – 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 Production '000　units 9,255 8,494 9 Employees Dec. 31 549,763 501,956 9.5 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 from The Truth About Cars http://www.thetruthaboutcars.com

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