VW earnings plunge 28.6 percent

14th February 2005, Comments 0 comments

14 February 2005, WOLFSBURG - German car giant Volkswagen reported on Monday that its net post-tax profit plunged 28.6 percent to EUR 716 million in 2004, but that the company would maintain the level of its dividend. In presenting preliminary figures on a year which it said had been one with a "difficult operating environment", VW management said pre- tax profits of just under EUR 1.1 billion were down by 18.8 percent from 2003. The earnings drop came on sales revenues of EUR 88.96 billion, up 4.9 percent

 14 February 2005

WOLFSBURG - German car giant Volkswagen reported on Monday that its net post-tax profit plunged 28.6 percent to EUR 716 million in 2004, but that the company would maintain the level of its dividend.

In presenting preliminary figures on a year which it said had been one with a "difficult operating environment", VW management said pre- tax profits of just under EUR 1.1 billion were down by 18.8 percent from 2003.

The earnings drop came on sales revenues of EUR 88.96 billion, up 4.9 percent, Europe's largest carmaker said.

Despite the earnings drop, VW management proposed the same EUR 1.05 dividend for common stock and EUR 1.11 for preferred shares that it paid last year, the company statement said.

The drop in earnings had been expected by analysts, the question being how large the decline would be, after VW sales in the United States had fallen 15 percent and those in China by some six percent.

VW said its group car sales in 2004 reached 5.079 million units, up 1.3 percent, while production gained 1.4 percent to 5.093 million cars. Employment in the group rose by 1.7 percent to 342,502.

The company characterized 2004 as a year in which the competitive environment was "fierce", a situation made more difficult by unfavourable currency rates and higher prices for raw materials.

DPA

Subject: German news

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