FRANKFURT, Germany (AP) — German automaker Volkswagen says after-tax profits rose 21 percent for last year, to 11.1 billion euros ($12.4 billion).

The maker of Volkswagen, Audi, Skoda and SEAT brand cars said Friday that it increased its profit margins during the year and proposed to increase its dividend to shareholders.

But it offered a cautious outlook for 2015, citing a "persistently challenging market environment." It said sales would increase by at least 4 percent, "depending on economic conditions." It said economic trends in Latin America and Eastern Europe could affect its commercial vehicles and power engineering businesses.

Sales revenue rose 2.8 percent last year to 202.5 billion euros. Volkswagen said it would raise its dividend to 4.80 euros per ordinary share, up from 4.00 euros in 2013.