Audi, Porsche sales assist Volkswagen to record underlying profit

Record Audi and Porsche sales assisted Volkswagen swing to a record underlying profit in last year, although a larger than expected charge from the diesel emissions scandal indicated it missed for its operating profit.

Sales of the German automaker’s high-end brand names lifted underlying operating profit prior to special items 14 percent to 14.6 billion euros ($15.5 billion) this year, after the company reported its most significant ever loss in 2015.

Volkswagen anticipated broadly stable revenues this year.

Hidden earnings was broadly in line with projections for the world’s most significant automobile producer by volume sales, which hiked its dividend over the expected after group sales rose to new highs, with an 8.1 percent jump in 4th quarter deliveries.

Volkswagen is having problem with the fallout from its admission 17 months ago that it manipulated U.S. diesel emissions tests, a scandal that some experts have estimated may cost it over $30 billion in fines, compensation and automobile refits.

Automaker has since accepted an expensive shift to more electric vehicles and in 2016 eclipsed Toyota as the world’s top-selling automaker with record deliveries of 10.3 million.

Although group sales dropped 4 percent in January due to the national holidays and a tax hike on small-engine vehicles in China, its most significant market, Volkswagen anticipated an underlying operating margin of in between 6 and 7 percent for 2017, compared with the 6.7 percent it attained last year.