Volkswagen Warns of Uncertainty Ahead After Strong 2019 --Update
February 28 2020 - 12:01PM
Dow Jones News
By William Boston
BERLIN -- German auto manufacturer Volkswagen AG on Friday
reported strong growth in sales and earnings in 2019, but warned
that any forecast for the current year faced uncertainty from
geopolitical turbulence and the impact of the coronavirus
epidemic.
Volkswagen is the largest auto maker in the world by sales, and
the biggest in China, which has seen economic activity nearly grind
to a halt in the past month as the coronavirus spread and the
Chinese government's efforts to stem the epidemic shut factories
and kept people home.
In recent days, the virus has spread to Europe and the U.S.,
threatening to become a pandemic and a huge risk to Europe's
already weak economy. In its earnings report, Volkswagen predicted
a 4% decline in overall sales this year, but said it still expected
sales from its auto brands that include VW, Audi, Porsche, Skoda
and SEAT to rise slightly.
That forecast is subject to a number of caveats, the company
said, saying it would have to keep an eye on "uncertainties
including geopolitical tensions and conflicts as well as epidemics
spreading across countries and regions such as the current spread
of the coronavirus."
Volkswagen said sales in 2019 rose 7% to EUR253 billion ($278
billion), and profit rose 13% to EUR13.3 billion ($15 billion).
Production fell 2% to 10.8 million vehicles.
Volkswagen gave no detailed estimate of how the loss of
production and sales in the wake of the virus in China would affect
sales and earnings in the first quarter. China accounts for about
41% of Volkswagen's overall unit sales and its business in China
makes a substantial contribution to annual earnings.
A survey published this week by the European Chamber of Commerce
said a majority of European companies it polled expected a severe
impact to business from the virus.
(END) Dow Jones Newswires
February 28, 2020 11:46 ET (16:46 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Volkswagen (TG:VOW)
Historical Stock Chart
From Apr 2024 to May 2024
Volkswagen (TG:VOW)
Historical Stock Chart
From May 2023 to May 2024