Volkswagen warns of cloud outlook as commodity hedges improve income

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  • Q1 Working Return on Gross sales 13.5% vs. 7.7%
  • Commodity hedge boosts income amid rising uncooked materials costs
  • Q1. Group deliveries down 21.9% in
  • All-electric car deliveries bounce 65%

BERLIN, April 14 (Reuters) – Volkswagen (VOWG_p.DE) warned on Thursday that it had begun to really feel the results of the conflict in Ukraine on provide chains and uncooked materials costs within the first quarter, with long-term results on its Buying and selling is tough to foretell.

The corporate indicated working revenue of 8.5 billion euros ($9.27 billion) for the primary three months of the yr, however famous that 3.5 billion euros was on account of commodity hedges amid rising uncooked materials costs.

Volkswagen shares had been down 2.1% at 147.9 euros by 1054 GMT.

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Its working return on gross sales jumped to 13.5% within the first quarter, in keeping with preliminary knowledge, from 7.7% in the identical interval in 2021 when the COVID-19 pandemic and semiconductor shortages had been weighing closely on outcomes.

A spokesperson mentioned in March that the corporate had long-term measures in place with suppliers to safe uncooked supplies, together with a “complete and forward-looking procurement and hedging program for crucial valuable metals”.

The Volkswagen brand is pictured on the 2022 New York Worldwide Auto Present, Manhattan, New York Metropolis, US, April 13, 2022. Reuters/Brendan McDermid

Nonetheless, Volkswagen warned at its annual outcomes convention final month that the outbreak of the conflict in Ukraine has known as into query its annual forecast of an 8-13% improve in income with a 5-10% improve in income. learn extra

Volkswagen Group deliveries had been down 21.9% in January to March, totaling greater than 1.89 million autos, with model deliveries down 25.6%. Nonetheless, deliveries of all-electric autos rose 65% to 99,100, with the most important improve in China.

The carmaker has prioritized its electrical line-up amid a scarcity of semiconductors as a method to improve income and keep on monitor to fulfill stringent European local weather laws.

BMW (BMWG.DE) reported final week that its deliveries fell 6.2% within the first quarter whereas Mercedes-Benz noticed a 15% drop from final yr.

Volkswagen is scheduled to publish first quarter outcomes on Could 4.

($1 = 0.9170 Euro)

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Reporting by Victoria Waldersee; Modifying by Maria Sheehan, Kirsten Donovan

Our Requirements: Thomson Reuters Belief Ideas.

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