Volkswagen shares rose 2.5% in early Frankfurt trading on Tuesday as investors decided 'it could have been worse' as they gave their verdict on results and the carmaker's assessment of prospects.
VW expects only a slight improvement in its 2025 operating profit margin, forecasting a range of 5.5% to 6.5%, compared with 5.9% in 2024.
Finance chief Arno Antlitz acknowledged that the outlook was disappointing, pointing to the high costs of expanding its electric vehicle lineup and battery production. The forecast does not factor in potential US trade tariffs on Mexican or European imports.
Operating profit fell 15% last year to €19.1 billion on revenue of €324 billion, in line with analyst expectations.
The group has proposed a dividend of €6.36 per preference share, down from €9.06 in 2023, reflecting cost-cutting measures following major cuts to jobs and capacity.
Volkswagen has trimmed its five-year investment plan to €165 billion, €15 billion lower than before, as it grapples with pricing pressures in China and competition from Asian rivals.
The stock was up €2.75 at €112.90.