FRANKFURT — Volkswagen Group doubled its working revenue in 2021 however warned that Russia’s invasion of Ukraine and its affect on provide chains may hit enterprise this 12 months in unexpected methods.
Working revenue final 12 months doubled to 19.3 billion euros ($21.1 billion) regardless of decrease deliveries, VW stated in a press release on Friday.
International automobile gross sales for the multibrand group, whose manufacturers embrace VW, Porsche, Audi and Skoda, declined by 6.3 % to eight.6 million final 12 months due to microchip shortages, VW stated.
The doubling of working revenue was because of greater costs and a extra favorable product combine, the corporate stated.
VW is proposing to lift its annual dividend by greater than half to 7.50 euros per extraordinary share and seven.56 euros per most well-liked share.
The automaker’s VW, Audi, Porsche and Skoda manufacturers have been compelled to chop manufacturing after Russia’s invasion of Ukraine halted the provision of key wire harnesses produced in Ukraine.
Automakers are scrambling to seek out different sources of significant elements made in Ukraine from as far afield as China and Mexico, as Russia’s invasion halts meeting strains and breaks complicated provide chains.
“The battle has an affect on your entire world financial system, on uncooked supplies, on provide chains and subsequently on our firm,” Volkswagen finance chief Arno Antlitz instructed journalists on Friday.
“The affect of this can’t be conclusively assessed at this time limit,” he stated, including the group was at present engaged on tapping different suppliers in jap Europe and North Africa to acquire wire harnesses.
The corporate stated it expects an working margin on gross sales of seven.0 % to eight.5 % in 2022, in contrast with 7.7 % in 2021.
“Nonetheless, this steerage is topic to the additional growth of the struggle in Ukraine and specifically the affect on the group’s provide chains and the worldwide financial system as a complete,” VW stated.
The automaker expects automobile deliveries to extend between 5 % and 10 % this 12 months.