Volkswagen's 2006 profit rose 52 percent to 4.38 billion euros
Volkswagen AG reported a better-than-expected full-year operating profit, informs Reuters.
Volkswagen's profit rose 52 percent to 4.38 billion euros ($5.8 billion).
VW shares rose to a record high, trading up 6.9 percent at 94.00 euros by 1405 GMT.
"The results are very good: operating profit and net income were above our expectations (and) the dividend was in line with our estimate," said Marc-Rene Tonn, analyst at M.M. Warburg.
"Particularly positive was the development in the free cash flow at Automotive," he added.
Volkswagen promised to continue improving efficiency under its new management led by Martin Winterkorn, a former Audi boss.
"We will continue to vigorously drive forward the activities to improve cost structures and processes in 2007. This, along with the steps we undertook in 2006, will lead to a sustainable improvement in our competitiveness," Volkswagen said.
About Volkswagen
Volkswagen, pronounced folksvagen meaning: "people's car" (also known as VW) is an automobile manufacturer based in Wolfsburg, Germany in the State of Lower Saxony.
It forms the core of Volkswagen AG (VAG or VWAG), one of the world's four largest car producers.
Though the origins of the company date back to the 1930s, the design for the car that would become known as the Beetle / "Käfer" date back even further, as a pet project by car designer Ferdinand Porsche (1875–1951). Adolf Hitler's desire that almost anybody should be able to afford a car coincided with this design—although much of this design was inspired by the advanced Tatra cars of Hans Ledwinka. more
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