Volkswagen Posts Higher 1Q Profit But Flags Ukraine Concerns
April 14 2022 - 4:55AM
Dow Jones News
By Ed Frankl
Volkswagen AG said first-quarter earnings would be considerably
higher year-on-year, though cautioned on the continuing effects on
exchange rates and commodity markets from the war in Ukraine.
The German auto maker said quarterly operating profit before
special items was around 8.5 billion euros ($9.26 billion), with an
operating return on sales of around 13.5%, based on preliminary
data. VW posted EUR4.8 billion in operating profit in the same
three months last year.
Net cash flow in the automotive division was around EUR1.5
billion.
The Wolfsburg-based company said the effects of the war in
Ukraine still can't be predicted with "sufficient certainty".
"There is therefore still a risk that further developments in
the Ukraine war will have a negative impact on the Volkswagen
Group's business activities," it said
The car maker also said there had been a significant impact on
exchange rates, developments in the commodity market remain
unpredictable, and that supply bottlenecks could arise from the
crisis.
VW also warned on the possibility of supply constraints on
semiconductors should the pandemic situation worsen.
The company expects to post full results on May 4.
At 0820 GMT shares were flat.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
April 14, 2022 04:40 ET (08:40 GMT)
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