Net income for the year

NET INCOME FOR THE YEAR

Volkswagen AG’s sales rose by 17.4% year-on-year to €67.2 billion in the reporting period. The proportion of sales generated outside of Germany was 62.9% (62.4%). Cost of sales was €61.8 billion, an increase of 16.5% over 2010. As a result, gross profit rose to €5.4 billion.

Selling, general and administrative expenses were above the prior-year level due to expansion in the volume of business. However, the ratio of selling, general and administrative expenses to sales declined versus the previous year to 8.3% (8.9%). At €1.1 billion (€1.0 billion), the other operating result was up slightly year-on-year.

Higher income from profit and loss transfer agreements in particular led to a 30.2% increase in the financial result to €6.2 billion.

Volkswagen AG’s result from ordinary activities rose to €7.1 billion (€4.9 billion) due to significant improvements in the operating business and the higher financial result. The extraordinary result comprises the effects from the transition to the new accounting rules in the German Commercial Code following the introduction of the Bilanzrechtsmodernisierungsgesetz (BilMoG – German Accounting Law Modernization Act). In 2011, this is the definitive expense recognized for the revaluation of pension provisions. After deducting income taxes, net income amounted to €3.4 billion (€1.5 billion).

Download

INCOME STATEMENT OF VOLKSWAGEN AG
€ million		2011		2010
* Including write-downs of financial assets.
Sales		67,178		57,243
Cost of sales		61,789		53,059
Gross profit on sales		+5,389		+4,184
Selling, general and administrative expenses		5,567		5,090
Other operating result		+1,082		+1,043
Financial result*		+6,239		+4,791
Result from ordinary activities		+7,143		+4,928
Extraordinary result		–1,095		–1,789
Taxes on income		2,630		1,589
Net income for the year		3,418		1,550
Retained profits brought forward		6		130
Appropriations to revenue reserves		1,708		640
Net retained profits		1,715		1,039