By Friedrich Geiger
FRANKFURT--Volkswagen AG (VOW.XE) said Friday it is aiming to
match last year's operating profit in 2013 as it expects revenue to
rise, but amid an uncertain economic environment and intense
competition.
"While we shall see positive effects from our attractive model
range and strong market position, there will also be increasingly
stiff competition in a challenging market environment," Volkswagen
said.
The German car maker--Europe's biggest auto maker by
sales--proposed increasing dividends by almost 17% for 2012 after
net profit rose sharply due to record sales and its acquisition of
sports car maker Porsche.
Announcing preliminary results for the year to Dec. 31,
Volkswagen said full-year net profit rose to 21.72 billion euros
($28.73 billion) from EUR15.41 billion in 2011 as strong sales in
China and North America, the world's two biggest auto markets,
offset shrinking demand in Europe.
A EUR12.3 billion gain from the valuation of Porsche Automobil
Holding SE (PAH3.XE), the investment company that used to own the
Porsche car-making business, also inflated net profit.
Volkswagen has proposed a EUR0.50 increase in the dividend paid
to holders both of preferred stock and ordinary stock to EUR3.56
and EUR3.50, respectively.
The auto maker is controlled by the Porsche and Piech families.
Volkswagen's other major ordinary shareholders are the German state
of Lower Saxony and Qatar Holding, the investment arm of the Middle
East kingdom.
Operating profit rose 2.1% to EUR11.51 billion, as the
first-time consolidation of Porsche and truck maker MAN SE (MAN.XE)
masked Volkswagen's underlying performance. Write-downs on prices
Volkswagen paid to increase its stakes in the companies likely
mostly offset their contributions to operating profit, the company
said earlier.
Volkswagen's multiple acquisitions in recent years, including
Swedish truck maker Scania and Italian motorcycle maker Ducati,
make it difficult to judge its underlying performance. The group
whose 12 brands include Skoda and Lamborghini has consolidated
Porsche's sports car business since August and MAN since November
2011.
Revenue rose 21% to EUR192.68 billion last year, helped by the
addition of Porsche and MAN and strong sales of Volkswagens' other
brands. The group sold 9.3 million vehicles, almost a third of
which in China. Unit sales of VW passenger cars rose 13% and those
of Audi increased 12%.
Volkswagen is set to release full 2012 figures on March 14.
Write to Friedrich Geiger at friedrich.geiger@dowjones.com
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