VW backs outlook despite predicting first quarter profit shortfall
2025-04-09 20:47
US
:VLKAF
IT
:4VOW
IT
:1VOW3
CA
:VWA
GB
:0P6N
PL
:VOW
DE
:VOW0
HU
:VOLKSWAGEN
AT
:VOWI
CZ
:VOW
US
:VLKPF
GB
:VOWD
DE
:VOWB
DE
:VOWA
DE
:VOW
GB
:VOW3D
DE
:VOW3
AT
:VOW
BG
:VOW
GB
:0P6O
BG
:VOW3
US
:VWAPY
US
:VWAGY
DE
AT
BG
CZ
IT
GB
PL
HU
US
CA
(Alliance News) - Volkswagen AG on Wednesday warned one-off charges would see its operating result decline in the first quarter of 2025, and miss expectations, despite a modest improvement in sales.
Pre-announcing first quarter numbers, the Wolfsburg, Germany-based car maker said while group sales revenue improved by around 3% to EUR78 billion from EUR75.5 billion a year prior, the operating result fell to EUR2.8 billion from 4.6 billion.
VW said the operating result was impacted by special items totalling EUR1.1 billion.
It said the preliminary result deviates "significantly" from the average market expectation of around EUR4 billion. Analysts at Citi said the figure was below its own projection of EUR3.9 billion.
VW said it had taken a EUR0.6 billion provision in connection with CO2 regulation in Europe, a EUR0.2 billion charge for restructuring measures at CARIAD and made a EUR0.3 billion adjustment, part of which related to US import duties, introduced at the beginning of April.
The firm confirmed the outlook for the 2025 financial year and continues to expect sales revenue to rise by up to 5% year-on-year.
The operating return on sales is still expected between 5.5 and 6.5% and it sees the Automotive division's net cash flow between EUR2 and EUR5 billion.
Shares in VW closed down 2.4% at EUR83.84 each in Frankfurt on Wednesday.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
