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Volkswagen AG (ADR) (OTCMKTS:VLKAY) Witnesses Strong Performance in 2014

There were a lot of ups and downs in the auto industry during the previous year. Still Volkswagen AG (ADR) (OTCMKTS:VLKAY) managed to include its name in the list of the top companies 2014. The sales revenue and the profit of VLKAY rose to a significant level due to the improved demand in European nations.

Insights On The Matter:

Sales revenue of VLKAY increased to 147.7 billion euro in the first nine months of the year, slightly more than the previous year’s performance (145.7 billion euro). Management of the company expected it to grow significantly, but the exchange rate volatility affected the performance negatively and slowed it down. Volkswagen AG (ADR) (OTCMKTS:VLKAY) did well in terms of operating profit that elevated 10% and touched EUR 9.4 billion as compared to previous year’s 8.6 billion profits. Even though it had to face difficult conditions, but efficient work procedure and strong management support led VLKAY to earn good operating profit.

The demand for VLKAY’s products increased in 2014, which resulted in solid return on sales. As per the reports, the return on sales increased to 6.4% from previous year’s 5.9%. It decided not to include the sales revenues and profit figures of the various activities related to Chinese joint ventures. A statement made public by the company stated that figures of both these activities were calculated using equity methods; hence, they could not be including in the consolidated profit. The total share of operating profit generated out of the Chinese activities for the first nine months was EUR 3.9 billion.

Similarly to the operating profit, Volkswagen AG (ADR) (OTCMKTS:VLKAY) also managed to earn total EUR 11.5 billion profit before tax, significantly more than the previous year’s EUR 9.4 billion profit before tax. Overall, it performed extremely well against all the odds. Management of the company expected VLKAY to repeat the same performance in the coming months as well.

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