German autos giant Volkswagen reported a 15% year-on-year drop in annual operating profit on Tuesday, citing increasing costs and “extraordinary expenses” associated with its restructuring strategy.
It posted a revenue of 324.7 billion euros ($352.8 billion) in full-year 2024, up from 322.3 billion euros last year. The automaker said it expects sales revenue to exceed the previous year’s figure by up to 5% in 2025. It also forecasts that its operating margin, which hit 5.9% in 2024, will hit between 5.5% and 6.5% this year.
The company reported a 3.5% drop in vehicle sales through 2024, but touted the year’s “solid results in a challenging environment.”
The company said it would propose a dividend of 6.30 euros per ordinary share and 6.36 per preferred share at its annual general meeting in May — a 30% cut from the previous year.
Volkswagen’s autos division ended 2024 with net liquidity at 36 billion euros, down 10.5% year-on-year. The company said it expected that figure to come in between 34 billion euros and 37 billion euros in 2025, adding it “remains the group’s goal to continue its robust financing and liquidity policy.”
However, it also warned of upcoming headwinds.
The company, which previously told CNBC it would be eligible for temporary exemptions from new U.S. tariffs, said in its earnings report on Tuesday that “political uncertainty, increasing trade restrictions and geopolitical tensions” would create challenges this year.
Increasing competition, volatile commodity prices and emissions-related regulations would also create challenges.
“In a challenging competitive environment, we achieved a decent overall financial performance in 2024,” Arno Antlitz, Volkswagen’s chief financial officer said in a statement accompanying the results. “Our outlook reflects the global economic challenges and the profound changes that are happening in the industry.”
This breaking news story is being updated.