Volkswagen gives cautious outlook for rest of year - WRCBtv.com | Chattanooga News, Weather & Sports

Volkswagen gives cautious outlook for rest of year

Posted: Updated:

FRANKFURT, Germany (AP) - German automaker Volkswagen gave a cautious outlook for the year ahead Thursday after announcing a modest rise in 2013 earnings.

The company warned of a "difficult market environment" with tough competition and sharp ups and downs in exchange rates and prices for raw materials.

CEO Martin Winterkorn was "guardedly confident" about sales and earnings, saying he expected "a moderate increase in deliveries." The company said revenues this year would fall within 3 percent of last year's - either above or below.

The company faces headwinds from a slow auto market at home in Europe, and from a stronger euro that shrinks overseas earnings.

The Wolfsburg-based automaker said that 2013 operating earnings, which don't count tax and one-time charges, rose slightly to 11.7 billion euros ($16.3 billion) from 11.5 billion euros the year before. Revenues rose 2.2 percent to 197 billion.

The company relied on its luxury Porsche cars to make up for slowing sales at its mass-market brands and a decline in earnings at its other upmarket brand, Audi. Porsche, maker of the 911 sports car and Cayenne sport-utility vehicle, made a major 2.6-billion euro contribution to earnings, despite providing only a fraction of total sales at 14.3 billion. Porsche showed profit margins of 18 percent - very high by auto industry standards.

But sales fell 4.4 percent at the mass-market Volkswagen brand, due to spending on new technology, a stronger euro, and a slack economy in Western Europe. Audi saw its operating earnings slip to 5 billion euros from 5.4 billion euros as it spent more on new technologies and on building out its sales network, while facing "the challenging environment in many markets."

Porsche's net profit fell to 9.1 billion euros from 21.9 billion euros the year before. The comparison was distorted by a large, 12.3 billion-euro gain for 2012 from accounting effects related to Volkswagen's takeover of Porsche.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • NewsMore>>

  • Great Weather Headed Our Way

    Great Weather Headed Our Way

    Tuesday, August 22 2017 5:13 AM EDT2017-08-22 09:13:02 GMT

    Good Tuesday.  We will be hot and humid again today with the high reaching 93 degrees.  The heat index will top out in the upper 90s.  While we will see clouds building through the day, the chance for rain is very small, less than 20%. Wednesday marks a big change in our weather.  We will see a cold front moving through which will bring scattered showers to the area late Wednesday morning into early afternoon. 

    More

    Good Tuesday.  We will be hot and humid again today with the high reaching 93 degrees.  The heat index will top out in the upper 90s.  While we will see clouds building through the day, the chance for rain is very small, less than 20%. Wednesday marks a big change in our weather.  We will see a cold front moving through which will bring scattered showers to the area late Wednesday morning into early afternoon. 

    More
  • TWRA: Free hunting day set for Aug. 26

    TWRA: Free hunting day set for Aug. 26

    Tuesday, August 22 2017 3:15 AM EDT2017-08-22 07:15:13 GMT
    NASHVILLE --- Tennessee residents are allowed to hunt without a license on Saturday, Aug. 26 which coincides with the opening day of squirrel season. Free Hunting Day is an event the Tennessee Wildlife Resources Agency annually provides in hopes of increasing interest in hunting. Squirrel hunting is one of Tennessee’s oldest and favorite traditions. The day serves as an excellent opportunity for persons to experience the enjoyment of the sport. The TWRA encourages regular hunt...More
    NASHVILLE --- Tennessee residents are allowed to hunt without a license on Saturday, Aug. 26 which coincides with the opening day of squirrel season. Free Hunting Day is an event the Tennessee Wildlife Resources Agency annually provides in hopes of increasing interest in hunting. Squirrel hunting is one of Tennessee’s oldest and favorite traditions. The day serves as an excellent opportunity for persons to experience the enjoyment of the sport. The TWRA encourages regular hunt...More
  • Sen. Corker releases statement on President's Afghanistan strategy

    Sen. Corker releases statement on President's Afghanistan strategy

    Monday, August 21 2017 11:34 PM EDT2017-08-22 03:34:08 GMT
    U.S. Sen. Bob Corker. WRCBtv.com photoU.S. Sen. Bob Corker. WRCBtv.com photo

    Sen. Bob Corker released a statement Monday on President Trump's address on Afghanistan.

    More

    Sen. Bob Corker released a statement Monday on President Trump's address on Afghanistan.

    More
Powered by Frankly