German automaker Volkswagen on Friday said its full-year 2007 net profit jumped nearly 50 percent on solid sales.
Net earnings came to 4.12 billion euros (6.3 billion dollars), surpassing the 3.95-billion-euro consensus forecast of analysts polled by Thomson Financial News.
Sales rose 3.8 percent to 108.89 billion euros from 104.87 billion in 2006, below the consensus forecast of 109.46 billion euros.
Pretax profit at 6.5 billion euros surpassed the 2006 figure of 2.009 billion and was considerably higher than the company's target of at least 5.1 billion.
Analysts had penciled in 5.70 billion.
Volkswagen proposed to raise its dividend to 1.80 euros per share from 1.25 eur per share ae year earlier.
It said that in 2008, it expected deliveries to customers to exceed the record set in 2007, with sales figures rising in Asia-Pacifc and in central and eastern Europe. Sales overall are also projected to be higher than 2007.
“The further optimization of our processes and our continued systematic cost discipline will also have a positive impact on earnings development,” it said, adding operating profit should then be higher in 2008 form 2007.
VW said 2007 deliveries reached a record level of just under 6.2 million vehicles, which represents a growth of 7.9 percent.
VW was due to release its official full year results on March 13.
