VW expects to post an underlying operating margin of between 6 and 7 percent this year
Volkswagen (VOWG_p. DE) forecast broadly stable earnings this year after record sales of luxury Audi and Porsche cars helped it post its highest annual underlying operating profit ever.
The carmaker expects to post an underlying operating margin of between 6 and 7 percent this year, compared with 6.7 percent last year, even as revenue growth accelerates to 4 percent, it said on Friday.
Volkswagen (VW) also reported operating profit before special items jumped 14 percent to a record level of 14.6 billion euros ($15.5 billion), broadly in line with forecasts.
It hiked its dividend more than expected, saying it would propose a payout of 2.06 euros per preferred share and 2.00 euros per ordinary share for 2017, up from 0.17 euros and 0.11 euros respectively a year earlier.
Analysts had on average expected a dividend of 1.86 euros per preferred share.
Record earnings before one-off items reflect progress VW has achieved on making its core brand leaner and more efficient.
But VW booked bigger-than-expected one-off charges totalling 7.5 billion euros in 2016, of which 6.4 billion were related to the emissions-test rigging scandal. Analysts had on average forecast 4.2 billion euros in total.
Including those charges, VW swung to a 2016 operating profit of 7.1 billion euros from a year-earlier loss of 4.1 billion, missing consensus for 10.5 billion.
VW keeps struggling with the fallout from its admission 17 months ago that it rigged U.S. diesel emissions tests, a scandal that some analysts have estimated may cost over $30 billion in fines, compensation and vehicle refits and which has forced it to embrace a costly shift to more electric vehicles.
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