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VW Touts Record Unit Sales, Revenue Gain
Volkswagen Group reports its revenue in 2017 climbed 6% to €230.7 billion ($283.7 billion) as unit retail sales rose 4% to a record 10.74 million vehicles.
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Volkswagen Group reports its revenue in 2017 climbed 6% to €230.7 billion ($283.7 billion) as unit retail sales rose 4% to a record 10.74 million vehicles.
The group’s net profit jumped to €11.4 billion ($14 billion). Adjusted operating profit surged more than 90% to €13.8 billion ($17 billion).
The profit gains came in spite of €3.2 billion in special charges related to the cost of legal issues, buy-back and retrofit programs in the U.S. that were related to the carmaker’s diesel cheating scandal.
VW says the diesel crisis caused net cash flow by its automotive division to swing from a positive €4.3 billion in 2016 to a negative €6 billion last year.
The company cautions that profits could be dented this year by the cost of launching new models and developing electrified vehicles. Analysts were largely unimpressed by last year’s results, inferring that the company’s cost-cutting measures may be losing momentum.
VW anticipates its retail sales will “moderately exceed” last year’s volume. The company predicts its revenue could grow as much as 5%.
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