The Volkswagen Group, the world’s second largest automaker and the biggest in Europe, has announced its operating profit surged last year 8.8 percent to a record 12.7 billion euros ($14.25 billion), buoyed by double-digit growth in deliveries at the luxury Audi and Porsche brands.
Chief Financial Officer Hans Dieter Poetsch did warn in a statement that “Continuing political uncertainty, strong currency fluctuations and tough environments in markets such as Russia and Brazil present major challenges,” outlining the results for the year. VW added that its sales revenue in 2014 surged 2.8 percent to a new all time high of 202.5 billion euros. Meanwhile, the group managed to keep up to its promises, delivering an improved operating margin of 6.3 percent last year, up from 5.9 percent during the year-ago period. That was at the upper end of the predicted range for the period, of between 5.5 percent and 6.5 percent. Profit after tax jumped 21 percent to 11.1 billion euros. Meanwhile, the auto division’s net cash flow grew by 1.7 billion euros to 6.1 billion euros and net liquidity for the underlying auto business was increased to 17.6 billion euros from 16.9 billion euros.
Now, after many years of pushing the company to deliver on the promise of overcoming Japan’s Toyota Motor in terms of sales to become the largest automaker in the world, with the target within reach the German carmaker has altered its focus towards delivering higher revenue and profit. The group is currently pushing for massive investments to develop environmentally friendly vehicles and introduce numerous new digital features.
Via Automotive News Europe