) posted a handsome 41% rise in net profits to €21.7 billion
($28.7 billion) in 2012 from €15.4 billion in the prior year,
driven mainly by the accounting boost received from the addition
of Porsche into the company's well renowned 12 brands.
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Revenues escalated 21% to €192.7 billion ($254.9 billion), driven
by impressive vehicle deliveries in the year that topped 9
million units globally for the first time in the company's
history. Vehicle deliveries grew 12.2% to 9.3 million units in
2012, driven by strong demand in North America and Asia,
partially offset by weak sales in Europe.
Operating profits edged up 2.1% to €11.5 billion ($15.2 billion)
in 2012. Due to the impressive rise in profits, the automaker
raised its dividend on ordinary shares by 16.7% to €3.50 ($4.60)
from €3.00 and on preferred shares to €3.56 ($4.71) from €3.06
Volkswagen expects 2013 revenues and vehicle deliveries to exceed
the 2012 levels. However, due to the uncertain macroeconomic
environment in Europe, the company anticipates 2013 operating
profits to tally with the 2012 level.
Recently, Germany's another automaker
) reported an 8% increase in net earnings to €6.50 billion ($8.38
billion) or 7% to €5.71 ($7.37) per share in 2012. Revenues went
up 7% to €114.30 billion ($147.4 billion), mainly driven by
higher sales in Mercedes-Benz cars and Daimler Trucks segments as
well as higher revenues generated from Daimler Financial
However, EBIT slid 2% to €8.62 billion ($11.11 billion) during
the year. The decline was attributable to a shift in the regional
structure of unit sales, unfavorable model mix and higher
expenses in connection with the expansion of Mercedes-Benz Cars'
Volkswagen, a Zacks Rank #2 (Buy) stock, has targeted to become
the world's largest carmaker both in terms of sales and
profitability by 2018 based on the strength in emerging markets,
including Brazil, Russia, India and China.
While we intend to prefer Volkswagen, other stocks that are also
worth a look include
STRATTEC SECURITY CORPORATION
). Both of them carry a Zacks Rank #1 (Strong Buy).