Volkswagen 2Q Profit Falls; Backs 2022 Guidance
July 28 2022 - 2:10AM
Dow Jones News
By Kim Richters
Volkswagen AG said Thursday that earnings dropped in the second
quarter, but backed its full-year targets.
The German auto maker said aftertax profit came in at 3.91
billion euros ($3.99 billion), compared with EUR5.04 billion in the
same period year-prior. Operating profit before special items fell
28% to EUR4.74 billion and the corresponding return on sales fell
to 6.8% from 9.7%, as it booked around EUR2.4 billion in negative
fair value effects mainly related to raw material hedging.
"Before these book value losses, the underlying performance even
improved over a good 1Q 2022," it said.
Quarterly revenue rose 3.3% to EUR69.54 billion.
For the full year, Volkswagen continues to expect revenue to be
8% to 13% higher than in the previous year and operating return on
sales of between 7.0% to 8.5%.
"The Group expects the product mix to normalize in 2H as the
semi-conductor situation improves in combination with a strong
order book," said the car maker, adding that a "noticeable recovery
of the monthly sales towards the end of 2Q additionally bodes well
for H2 sales."
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
July 28, 2022 01:55 ET (05:55 GMT)
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