Volkswagen Backs Profit Target for 2021 After 3Q Hit by Chip Shortage
October 28 2021 - 2:17AM
Dow Jones News
By Kim Richters
Volkswagen AG on Thursday confirmed its guidance for
profitability for the year after third-quarter operating profit and
revenue declined as the car maker was affected by the global
semiconductor shortage.
The German car maker said quarterly operating profit came in at
2.60 billion euros ($3.02 billion), compared with EUR3.18 billion
the same period a year earlier.
Operating profit before special items fell 12% to EUR2.80
billion, with a corresponding margin of 4.9% for the period.
Revenue fell 4.1% to EUR56.93 billion but beat analysts'
expectations of EUR54.66 billion compiled by FactSet.
Meanwhile, aftertax profit was up 5.6% to EUR2.90 billion.
For 2021, Volkswagen backed its forecast to achieve an operating
return on sales between 6.0% and 7.5%. However, it lowered its
full-year guidance for deliveries to customers, which are now
expected in line with the prior year. Revenue is now expected
considerably higher than in 2020.
"The results of the third quarter show once again that we must
now systematically drive forward the improvement in productivity in
the volume sector," said Chief Executive Officer Herbert Diess.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
October 28, 2021 02:02 ET (06:02 GMT)
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