Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,971.8061.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Volkswagen slashes profit, sales forecasts

German carmaker Volkswagen cut its forecasts for operating profit and sales growth on Monday due to a downturn in demand for passenger cars, while keeping profit margin targets.

Reuters|
Nov 19, 2019, 07.37 AM IST
0Comments
AP
volkswagen ap
HAMBURG: German carmaker Volkswagen cut its forecasts for operating profit and sales growth on Monday due to a downturn in demand for passenger cars, while keeping profit margin targets.

“It is fair to say that the very best of the party is over,” chief financial officer Frank Witter told analysts in a call to discuss the company's outlook.

Volkswagen joins a string of automakers and suppliers including Ford and Continental in warning of tough times for an industry facing higher investments into cleaner and self-driving technologies at a time when a trade war between Washington and Beijing is curbing global growth.

Volkswagen now expects operating profit before special items to rise by at least 25% over 2016-2020, down from a previous forecast of more than 30%, presentation slides showed.

The Wolfsburg-based company also cut its forecast for sales growth over the period to 20% from more than 25%. The new forecasts sent Volkswagen shares down 4% to ¤176 euros, compared with a 0.6% fall in Germany's blue-chip DAX index.

”We believe this largely reflects softer volume growth expectations,” Citi analysts said in a note. Volkswagen, whose brands range from budget Skodas and Seats to upmarket Audis and Porsches, confirmed its targets for an operating margin of 6.5%-7.5% in 2019-2020 and 7%-8% in 2025.

Also Read

Volkswagen warns of slowing global auto markets

Tesla is no niche automaker anymore: Volkswagen CEO

Volkswagen to keep its Chakan plant closed for another month

Volkswagen to reduce dealer-partners in India to 50

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service