Volkswagen records with EUR 6.5 billion its highest profit before tax in the history of the Company
Volkswagen AG today announced in an Ad-hoc-Release its key figures for 2007.
Volkswagen presents 2007 consolidated financial statements:
- At EUR 6.5 billion, the Volkswagen Group recorded the highest profit before tax in the history of the Company; considerably higher than the target of at least EUR 5.1 billion originally planned for 2008
- Operating profit of EUR 6.2 billion increased by 40.3 percent compared with the previous year’s operating profit before special items, and more than three times higher after special items
- The Board of Management and Supervisory Board are proposing an increase in dividends for Volkswagen shareholders to EUR 1.80 per ordinary share
- Attractive model range further expanded; deliveries reach a record level of just under 6.2 million vehicles
- Sound balance sheet ratios: the equity ratio of the Group improved from 19.7 percent to 22.0 percent and of the Automotive Division from 28.8 percent to 32.3 percent
- Cash flows from operating activities in the Automotive Division increased by a further 16.4 percent on the high 2006 level to EUR 13.7 billion
- Investments in property, plant and equipment in the Automotive Division were EUR 4.6 billion, an increase of 25.0 percent on the low level of the previous year; the ratio of investments in property, plant and equipment to sales revenue (capex) increased from 3.8 percent to 4.6 percent
- Net liquidity in the Automotive Division increased to EUR 13.5 billion (previous year: EUR 7.1 billion).
Outlook
Its diverse range of brands gives the Volkswagen Group a critical competitive advantage. In 2008, almost all brands will again present attractive new models, enabling us to selectively complement the Group’s product portfolio and move into further market segments. We therefore expect deliveries to customers to exceed the record set in 2007, with sales figures rising in the Asia-Pacific and Central and Eastern Europe regions in particular.
As a result of the expected increase in unit sales, the Volkswagen Group’s sales revenue in 2008 will be higher year-on-year. “The further optimization of our processes and our continued systematic cost discipline will also have a positive impact on earnings development. Overall, we expect the Volkswagen Group’s 2008 operating profit to exceed the 2007 level”, said the Chairman of the Board of Management of Volkswagen AG, Prof. Dr. Martin Winterkorn.
Results at a glance
January-December
2007
2006
+/- (%)
Volkswagen Group (IFRSs):
Deliveries to customers
´000 units
6,189
5,733
+ 7.9
Vehicle sales
´000 units
6,192
5,720
+ 8.2
Production
´000 units
6,213
5,660
+ 9.8
Employees
Dec. 31
329,305
324,875
+ 1.4
Continuing operations:
Sales revenue
EUR million
108,897
104,875
+ 3.8
Operating profit before special items
EUR million
6,151
4,383
+ 40.3
Special items
EUR million
-
-2,374
x
Operating profit after special items
EUR million
6,151
2,009
x
Profit before tax from continuing operations
EUR million
6,543
1,793
x
Profit from continuing operations
EUR million
4,122
1,955
x
Profit from discontinued operations*)
EUR million
-
795
x
Profit after tax
EUR million
4,122
2,750
+ 49.9
Minority interests
EUR million
2
1
x
Profit attributable to shareholders of Volkswagen AG
EUR million
4,120
2,749
+ 49.9
Earnings per share (basic)
- Ordinary shares
EUR
10.43
7.07
+ 47.5
of which from continuing operations
EUR
10.43
5.03
x
- Preferred shares
EUR
10.49
7.13
+ 47.1
of which from continuing operations
EUR
10.49
5.07
x
Automotive Division (including allocation of consolidation adjustments between the Automotive and Financial Services divisions):
Cash flows from operating activities
EUR million
13,675
11,745
+ 16.4
Cash flows from investing activities
EUR million
6,566
6,114
+ 7.4
- of which investments in property, plant and equipment
EUR million
4,555
3,644
+ 25.0
Net liquidity at December 31
EUR million
13,478
7,133
+ 89.0
Volkswagen AG (German Commercial Code):
Net income
EUR million
1,455
945
+ 54.0
Dividend proposal:
Dividend-per -ordinary share
EUR
1.80
1.25
-per preferred share
EUR
1.86
1.31
*) Net gain on disposal of the Europcar group and the Europcar´s current profit after tax for January to May 2006.
The Annual Press Conference and the International Investor Conference will be held on March 13, 2008 in Wolfsburg.
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