Volkswagen in Wolfsburg: The car company was able to cope well with the lack of chips last year. But now the Ukraine war is causing great concern.
(Photo: Bloomberg)
Dusseldorf The Volkswagen Group fared better last year than expected in financial circles and most stock market analysts. As the Wolfsburg car manufacturer announced on Friday, sales in 2021 increased by twelve percent to 250 billion euros. The net result after tax is almost 15.5 billion euros, which corresponds to an increase of 75 percent.
Shareholders can expect a significantly increased payment. They are to receive a dividend of EUR 7.50 per common share and EUR 7.56 per preferred share, which is EUR 2.70 higher than in the previous year.
Volkswagen has achieved growth in sales and profits, although vehicle sales have shrunk by around 600,000 to 8.6 million cars due to the ongoing shortage of chips. The VW Group was able to sell more expensive models with better equipment, which improved earnings over the long term. For 2022, the Wolfsburg expects another plus – but only with reservations.
The group is now calculating in the current year with an increase in sales of between five and ten percent. The operating return will be in a range between 7.0 and 8.5 percent. Volkswagen had specified an interval between 6.5 and 7.5 percent for 2021, but ultimately even reached eight percent.
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The great unknown for Volkswagen is the war in Ukraine. The forecast depends on further developments and possible effects on the supply chains of the group and the global economy as a whole. There is a risk that these will continue to have a negative impact on business, according to Volkswagen.
The group has already felt the first negative effects in a number of German plants. Suppliers with factories in Ukraine are currently unable to sustain production and supply the automaker with wiring harnesses. Therefore, vehicle production is temporarily suspended in the plants of VW, Audi and Porsche.
A few days ago, CEO Herbert Diess had warned of the possible consequences of the war. “I believe that Europe and Germany could suffer greatly in the event of a long-lasting Ukraine conflict,” said Diess at the presentation of the new ID.Buzz electric bus in Hamburg.
More: VW is building a new e-car plant for two billion euros