Volkswagen Withdraws 2020 Guidance, Expects 1Q Revenue Fall
April 16 2020 - 8:05AM
Dow Jones News
By Giulia Petroni
Volkswagen AG said Thursday that it expects revenue to have
fallen in the first quarter, as it withdrew its outlook for the
full year due to the coronavirus hit.
The German car maker said that, according to preliminary
figures, it expects revenue for the period ended March 31 at around
55 billion euros ($60.12 billion). Operating profit is expected to
drop to EUR900 million, with a return on sales margin at around
1.6%.
"The turbulent raw-material and financial markets led to
significant negative fair value impacts from commodity derivatives
and negative currency effects, which burdened the first quarter
2020 result by EUR1.3 billion," Volkswagen said.
The company said it expects the automotive net cash flow in the
first quarter to amount to a negative EUR2.5 billion, mainly
because of a weaker underlying operating result as well as negative
effects in working capital due to higher inventories and lower
liabilities. Automotive net liquidity is seen at EUR17.8
billion.
Volkswagen said it withdrew its guidance for the full year and
it is currently not able to accurately forecast the impact of the
pandemic on customer demand, supply chain and production.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
April 16, 2020 07:50 ET (11:50 GMT)
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