Volkswagen Backs 2022 View Despite Tough Environment

   By Kim Richters 
 

Volkswagen AG on Wednesday confirmed its guidance for the full year despite supply-chain problems and a challenging environment.

For 2022, the German auto maker continues to expect revenue to be 8% to 13% higher than the previous year, and an operating return on sales of between 7.0% and 8.5%.

"However, it is not yet possible to conclusively assess in particular the specific effects of the latest developments in the Russia-Ukraine conflict or effects of the Covid-19 pandemic on the Volkswagen Group's business, on the global economy and growth in the industry in fiscal year 2022," it said.

As reported in April, first-quarter operating profit before special items rose to 8.45 billion euros ($8.89 billion) from EUR4.81 billion and was boosted by positive effects mainly from commodity hedging activities, and the operating return on sales increased to 13.5% from 7.7%.

On Wednesday, Volkswagen said revenue rose to EUR62.74 billion from EUR62.38 billion while after-tax profit increased to EUR6.72 billion from EUR3.41 billion.

The company said it was able to mitigate effects of the semiconductor and wire-harness shortages by moving resources and expects the chip shortage to ease in the second half of the year.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

May 04, 2022 01:51 ET (05:51 GMT)

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