Group sticks to goals
Volkswagen makes more money with fewer cars
05/04/2022 08:46 am
With clever safeguards, the car manufacturer Volkswagen can keep some of the global economic upheaval at bay. However, sales collapse. This is not yet reflected in the business figures. In the hope of a better second half of the year, the targets for the year remain untouched.
Despite ongoing supply bottlenecks in semiconductors and an uncertain economic environment, Volkswagen, Europe’s largest carmaker, is sticking to its annual forecast. A strong first quarter, in which sales increased slightly despite significantly lower vehicle sales, makes the Wolfsburg DAX group optimistic. As already known, the operating margin almost doubled thanks to special effects.
“Our group once again demonstrated great resilience in the first quarter despite the unprecedented challenges the world is facing from the terrible war in Ukraine and the ongoing pandemic with its effects on supply chains,” said CEO Herbert Dies. In the first quarter, it was possible to largely cushion the bottlenecks in semiconductors and cable harnesses by redistributing the sources of supply between the large markets in Europe, China and North and South America. Even in a world that has become increasingly polarized by the war, the car company is determined to expand its global presence and to further advance its transformation into a sustainable and fully digital mobility provider.
In the first three months, Volkswagen brought a fifth fewer cars to customers, at 1.9 million, but still took in slightly more than a year ago. In the end, the revenues added up to 62.7 billion euros – an increase of 0.6 percent. The group made up for the drop in deliveries by selling more expensive vehicles. As already known since the presentation of the key figures in mid-April, the operating result climbed from 4.8 billion to 8.5 billion euros. The operating margin even rose to 13.5 from 7.7 percent.
The reason for the rapid increase is high inflows from financial instruments with which VW has hedged against higher commodity prices. The group paid significantly less for raw materials than is currently the case on the market, which is why there was a high book profit. According to further information, after taxes, VW doubled its profit to 6.7 billion euros.
For the year as a whole, VW continues to expect an operating return on sales of between 7.0 and 8.5 percent. Sales are expected to increase by 8 to 13 percent and deliveries by 5 to 10 percent. VW expects a better range of semiconductors in the second half of the year. However, this forecast depends on the further course of the war in Ukraine and the further course of the corona pandemic with its effects on business and the global economy.