Volkswagen Increases 2014 Dividend

FRANKFURT--Germany's Volkswagen AG said Friday it increased its 2014 dividend after a clear rise in profit and said it sees moderate revenue growth in 2015.

Net profit in 2014 was 10.85 billion euros ($12.28 billion), up from EUR9.07 billion. Revenue rose 2.8% year-on-year to EUR202.5 billion from EUR197 billion, with Volkswagen pointing to negative exchange rate effects, particularly in the first half of the year. Operating profit rose to EUR12.7 billion from EUR11.67 billion.

For 2015, management expects sales revenue to increase by up to 4% year-on-year. Volkswagen forecasts an operating return on sales between 5.5% and 6.5% in light of the challenging economic environment.

"Given the subdued growth prospects in regions outside China, there is no guarantee that 2015 will be a successful year -- either for the industry or for the Volkswagen Group," the company said.

For 2014, Volkswagen proposed a dividend of EUR4.86 for each preferred share, up from EUR4.07 for 2013.

Write to Natascha Divac at [e-mail]

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