German automaker Volkswagen made 8.8 billion euros, or $10.7 billion, final 12 months regardless of the pandemic
FRANKFURT, Germany — Volkswagen mentioned Friday it made higher than anticipated revenue of 8.8 billion euros ($10.7 billion) after tax in 2020 regardless of the pandemic. The world’s No. 2 automaker mentioned the fast restoration of China, its largest single market, and resilient gross sales of luxurious autos helped the underside line.
The corporate gave an upbeat outlook for this 12 months, saying it could carry momentum from the stronger second half of the 12 months over into earnings going ahead. It mentioned it was striving for earnings within the prime a part of its forecast vary of 5.0-6.5% returns on gross sales, and predicted gross sales income can be “considerably larger,” assuming profitable containment of the COVID-19 pandemic.
Volkswagen widespread shares traded 1.2% larger after the earnings assertion. Extra monetary particulars are to be introduced March 16 on the firm’s annual information convention.
The Wolfsburg-based carmaker mentioned that it had taken vital strategic steps in the course of the 12 months to speed up its push into software program and digital applied sciences and providers. It tripled its gross sales of electrical autos to 422,000 forward of stricter European Union limits on emissions of carbon dioxide, the first greenhouse gasoline blamed for world warming. The corporate’s manufacturers embrace luxurious carmakers Audi and Porsche, the place earnings per automobile are larger than for extra primary transportation.
The group’s earnings had been boosted by the Porsche Taycan, a high-performance four-door sedan that begins at $79,500 for the usual mannequin within the U.S. Gross sales of that mannequin reached 20,000. The Taycan is a part of German carmakers’ efforts to compete with electrical automobile pioneer Tesla, which has eaten into their gross sales of luxurious automobiles.
“The monetary outcomes now obtainable are much better than initially anticipated and present what our firm is able to attaining, particularly in a disaster,” Chief Monetary Officer Frank Witter mentioned in a press release. “We intend to hold over the sturdy momentum from the considerably higher second half into the present 12 months, and the packages for decreasing our fastened prices and in procurement will make us extra strong in the long run.