Volkswagen 2015 Results Hit by €16.2B Charge Related to Emission-Rigging Scandal

Source: Volkswagen Group

The 2015 financial performance of Volkswagen AG (ADR) OTCMKTS:VLKAY) was negatively impacted after taking €16.9 billion total charges, of which, €16.2 billion was related to the diesel emission-rigging scandal.

The stock price of Volkswagen declined almost 2% to $30.58 per share at the time of this writing, around 2:27 in the afternoon in New York.  Volkswagen (ETR:VOW3) shares closed €125.45 per share, down 1.26% in Germany.

Volkswagen 2015 financial results

Volkswagen reported a net loss (attributable to shareholders) of €1.58 billion for 2015. The company had a net profit of €10.85 billion in 2014.

The German automaker said its operating loss of €4.1 billion. Before special items, its operating profit was €12.8 billion.

Volkswagen’s earnings per ordinary shares were €3.20 last year, down from €21.82 in 2014. Its earnings per preferred shares also declined from €21.88 to €3.09.

According to the company, its revenue increased 5.4% from €202.5 billion to €213.3 billion despite the diesel emission-rigging scandal. The German automaker attributed its revenue growth to the improvements on the mix of its automotive business and the strong performance of its Financial Services division together with the positive impact of exchange rates.

Volkswagen operations in “great shape”

In a statement, Volkwagen Chairman Matthias Müller, said the company’s operations are in “great shape” based on the figures before special items for the past fiscal year.

According to him, the company should have reported “another successful year overall” if it did not allocate sizable provisions for all the repercussions related to the emissions issue.

“The current crisis – as the figures presented today also reveal – is having a huge impact on Volkswagen’s financial position. Yet we have the firm intention and the means to handle the difficult situation we are in using our own resources,” added Müller.

Yesterday, the company confirmed that an agreement in principle has been reached with U.S. regulators to resolve the diesel emission rigging scandal involving 600,000 vehicles.

The Board of Management and Supervisory Board considered all the circumstances of the company and concluded that its financial situation is favorable. Its leadership decided to propose a dividend payment of €0.11 per ordinary share and €0.17 per preferred share during the Annual General Meeting on June 22, 2016.