Here’s something you won’t see often in the bullish world of the automotive industry: the Volkswagen Group sees underlying earnings increased by 6% in 2014 – a figure seen by some analysts below the automaker’s potential.
Volkswagen AG has become the second-largest carmaker in the world last year and its target is to surpass Japan’s Toyota as the top player in the near future. Still, the group has been hit by earnings problems for its core VW namesake brand, which has caused a dent in the stellar results presented each quarter. Now, the group thinks it can reach a new record by increasing profit by 6% over the entire 12 month period but some industry experts reckon the company has grown weary and can post an even better result.
Last week during the third-quarter financial results conference call, finance chief Hans Dieter Poetsch said the automaker is on track to a second-half operating profit that matches the earnings brought during the first months – surpassing last year’s record figure of 11.7 billion and probably reaching 12.4 billion euros. NordLB auto analyst Frank Schwope says the VW Group has taken the cautious approach after German companies were punished when putting overly optimistic predictions and then failing to reach them.
Via Automotive News Europe