But VW Set To Weather Europe’s Economic Storm
Detailed Numbers Scheduled For March 12
Volkswagen reported record earnings for 2011, in its preliminary report, and investors are confident the company is set fair for 2012.
Despite the record year – net earnings jumped to €15.4 billion in 2011 from €6.8 billion the previous year – the fourth quarter was described as “transitional”, with operating profit slipping just under one per cent to €2.29 billion. Fourth quarter details will have to await VW’s full report on March 12.
“Q4 margins are softer than market expectations. However, as highlighted beforehand, Q4 is a transition quarter and we consider it a (stock) buying opportunity. MQB launch costs (the new manufacturing system which debuts with the Audi A3 launch in Geneva) are a burden in Q4 but provide for earnings growth in coming years,” said Commerzbank analyst Sascha Gommel.
Deutsche Bank analyst Jochen Gehrke said despite some uncertainties in some of VW’s core markets, 2012 will be underpinned by
- U.S. turnaround thanks to the locally produced Passat.
- First MQB benefits in the second half of 2012 and 2013.
- Growing product rejuvenation impact with several key models including the Golf being replaced during the year
Neil Winton – March 1, 2012
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