The biggest European automaker, the VW Group has announced very good fourth quarter results, in which its spending for developing new models and production expansion has been more than balanced by the record sales of Audi and Porsche.
According to Bloomberg analyst calculations, the group’s earnings before interest and taxes went up to 3.11 billion euros ($4.27 billion), improved from 2.64 billion euros a year earlier.
“Challenges for the Volkswagen group will come from the difficult market environment and fierce competition, as well as interest rate and exchange rate volatility and fluctuations in raw materials prices,” the company said in a statement.
As sales only rise “moderately” from a year ago, the company further expects the revenue to “move within a range of 3 %”, while the operating margins are forecasted for the whole group to be somewhere between 5.5 to 6.5 % – compared to last year’s 5.9%.
“Volkswagen should benefit from a gradual revival of the European car market this year,” said Daniel Schwarz, a Frankfurt-based analyst at Commerzbank. “Growth in China is set to continue.”
Volkswagen managed to come closer to its ultimate goal of becoming world’s No. 1 automaker, after it beat GM to gain second place – 9.73 million vehicles were sold by the German company, narrowly surpassing the US automaker’s 9.71 million units.
Via Automotive News Europe
by Aurel Niculescu
) - Monday, February 24th, 2014 - filed under Industry
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