Volkswagen's 3Q Results Weighed by Costs; Flags Supply-Chain Issues -- Update
28 Oktober 2022 - 11:57AM
Dow Jones News
By Kim Richters
Volkswagen AG on Friday posted third-quarter operating profit
that missed analysts' estimates as it was dragged by one-off costs,
while the car maker cut its vehicle sales outlook due to continued
supply-chain constraints.
The German auto maker said operating profit rose to 4.27 billion
euros ($4.26 billion) from EUR2.60 billion with the corresponding
return on sales increasing to 6.0% from 4.6%.
However, profit was hit by nonrecurring costs of around EUR1.6
billion related to its activities in Russia and the Porsche AG IPO,
and missed consensus estimates of EUR4.71 billion, according to a
Factset forecast.
Other burdens in the quarter included a EUR1.9 billion noncash
impairment charge connected to the withdrawal from the Argo AI
investment, the company said.
Quarterly revenue rose 24% to EUR70.71 billion, supported by the
performance of its premium, sport and luxury segments, and slightly
higher than analysts' forecast of EUR70.36 billion, according to
consensus estimates from FactSet.
Volkswagen confirmed it plans to reach the upper end of the
7.0%-8.5% operating-margin guidance and also the higher end of its
revenue-growth target this year.
However, the car maker cut its vehicle sales outlook for the
year and now expects deliveries similar to last year due to
continued supply-chain constraints. It previously expected a 5%-10%
increase. It also said other challenges include increasing
competitive intensity and stricter emissions-related
requirements.
At 0926 GMT, preferred shares in Volkswagen were down 2.7% at
EUR127.14.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
October 28, 2022 05:42 ET (09:42 GMT)
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