NET INCOME FOR THE YEAR
In fiscal year 2008, Volkswagen AG’s sales rose by 2.7% year-on-year to €56.7 billion on the back of stronger vehicle sales worldwide. 60.6% (61.5%) of sales revenue was generated outside Germany. As the cost of sales increased disproportionately to €55.8 billion, gross profit declined to €930 million. The rise in selling, general and administrative expenses is mainly attributable to the increase in sales promotion measures necessitated by the tougher competitive situation.
The ratio of selling, general and administrative expenses to sales also increased year-on-year. The other operating result improved by 11.8% to €1.5 billion. The financial result increased by 17.7% to €4.5 billion, chiefly due to higher income from investments and interest.
Overall, Volkswagen AG’s result from ordinary activities slipped to €2.5 billion (€2.8 billion) in 2008. After deducting income taxes, net income amounted to €0.8 billion.
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INCOME STATEMENT OF VOLKSWAGEN AG |
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|---|---|---|---|---|---|---|
|
€ million |
2008 |
2007 | ||||
| ||||||
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Sales |
56,710 |
55,218 | ||||
|
Cost of sales |
55,780 |
53,652 | ||||
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Gross profit on sales |
+930 |
+1,566 | ||||
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Selling, general and administrative expenses |
4,341 |
3,863 | ||||
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Other operating result |
+1,463 |
+1,309 | ||||
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Financial result* |
+4,472 |
+3,799 | ||||
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Result from ordinary activities |
+2,524 |
+2,811 | ||||
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Taxes on income |
1,697 |
1,356 | ||||
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Net income for the year |
827 |
1,455 | ||||
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Retained profits brought forward |
24 |
10 | ||||
|
Appropriations to revenue reserves |
70 |
720 | ||||
|
Net retained profits |
781 |
745 | ||||
Dividend PROPOSAL
In accordance with section 58(2) of the Aktiengesetz (AktG – German Stock Corporation Act), €70 million of the net income for the year was appropriated to other revenue reserves. The Board of Management and Supervisory Board are proposing to the Annual General Meeting to pay a dividend of €779 million from net retained profits, i.e. €1.93 per ordinary share and €1.99 per preferred share.
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PROPOSAL ON THE APPROPRIATION OF NET PROFIT |
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|---|---|---|
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€ |
2008 | |
|
Dividend distribution on subscribed capital (€1,024 million) |
778,620,176.71 | |
|
thereof on: ordinary shares |
569,195,999.51 | |
|
preferred shares |
209,424,177.20 | |
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Balance (carried forward to new account) |
2,322,846.40 | |
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Net retained profits |
780,943,023.11 |
