VW's 2010 profit soars to US$9.4b
Published:Sunday | February 27, 2011 | 12:00 AM
BERLIN (AP):Germany's Volkswagen AG saw its 2010 earnings soar to €6.84 billion (US$9.4 billion) as revenue climbed more than 20 per cent, creating the automaking group's most successful year ever, the company said last Friday.
Net profit attributable to shareholders was up from €960 million (US$1.3 billion) a year earlier, Europe's largest car maker said.
The total revenue of the group - which also includes brands such as Audi, Skoda or Seat - was up to €126.9 billion (US$174.6 billion) in 2010 from €105.2 billion the previous year. That led to an operating profit of €7.1 billion (US$9.8 billion).
CEO Martin Winterkorn said the company in 2010 put the economic crisis fully behind it and enjoyed "the best year in the history of the Volkswagen Group" in terms of revenue, operating and net profit.
Vehicle deliveries in 2010 were up by 13 per cent to 7.2 million, another record, the company said.
bullish outlook
The company, based in Wolfsburg, also gave a bullish outlook as it sees strong growth in China and elsewhere, saying it expects revenue and operating profit this year to top its 2010 results. China is Volkswagen's biggest single market.
In the US, Volkswagen is betting in 2011 on the launch of its new Passat model, which is to go on sale sometime after July 1, with a base price of around US$20,000.
The launch received wide attention with a Super Bowl ad that quickly went viral, showing a boy in a Darth Vader costume trying to use 'The Force' on objects including the Passat.
Volkswagen's shares jumped by 5.7 per cent on the announcement to euro118.20 (US$162.67) in late Frankfurt trading.
The company also nominated two new members to its supervisory board: Khalifa Jassim Al-Kuwari of Qatar Holding LLC, which holds a 17 per cent stake in Volkswagen, and Annika Falkengren, CEO of the Swedish bank SEB.
Falkengren is the first woman nominated by Volkswagen to the 20-member board, although there have already been female directors nominated by the employee side. Employee representatives make up half of the board.