MILAN, May 4 (Class Editori) — Volkswagen Group expects plants in China to reopen at full capacity by the end of May. While commenting on the quarterly results, the CEO Herbert Diess ruled out the possibility of separating the division dedicated to combustion engine from the electric vehicle business, adding that the Group is planning to reopen its plants in China at full capacity by the end of the month, support operations aiming to reduce the increasing costs, and expand its business in the US market focusing on electric cars.
Meanwhile, the Group confirmed its guidance for fiscal year 2022 despite difficulties in supply chains and challenges in the automotive market.
In detail, the German automaker confirmed its expectations of revenue growing between 8% and 13% year-on-year in 2022, with an operating margin on sales between 7% and 8.5%.
"Nevertheless, it is not yet possible to definitively assess the specific effects of the latest developments in the Russian-Ukrainian conflict or the impact of the COVID-19 pandemic on Volkswagen's operations as well as on the global economy, and estimate the industry's growth in fiscal year 2022," the company stated.
As reported in April, first quarter operating profit, excluding extraordinary items, rose to 8.45 billion euros, compared with the 4.81 billion euros reported a year earlier, with operating margin on sales rising from 7.7% to 13.5%.
Revenues for the quarter stood at 62.74 billion euros, compared with the 62.38 billion euros recorded a year earlier, while after-tax profit rose from 3.41 billion euros to 6.72 billion euros.
The company stated it was able to mitigate the effects of the semiconductor and wire harness shortage by shifting resources and expects the chip shortage to ease in the second half of the year.
Regarding its performance, Volkswagen's brand management pointed out that the company is facing geopolitical challenges, as well as the effects of lockdowns to curb COVID-19 in China and soaring energy and commodity prices.
The brand reported sales of 14.9 billion euros in the first quarter, compared to a result of 17.6 billion euros recorded in the same period of 2021, and confirmed its 2023 target of achieving an operating margin on sales of 6%.
CFO Arno Antlitz added that the Group continues to have the listing of Porsche AG on the stock exchange in the fourth quarter of this year among its objectives. Proceeds from the transaction would be used to accelerate the transformation.
(Source:Class Editori)
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