Volkswagen Adjusts Profit Guidance for 2021 After 1Q Revenue, Earnings Rose
May 06 2021 - 1:21AM
Dow Jones News
By Kim Richters
Volkswagen AG on Thursday lifted the full-year outlook for its
operating margin after posting an increase in revenue and earnings
for the first quarter.
The German car maker said aftertax profit came in at 3.41
billion euros ($4.09 billion) for the first quarter compared with
EUR517 million in the same period year-prior when earnings
plummeted amid the coronavirus pandemic. Operating profit rose to
EUR4.81 billion from EUR904 million, while operating return on
sales for this year's quarter was 7.7%.
Volkswagen said the earnings increase was mainly due to higher
unit sales, better product mix, positive effects from the valuation
of raw material hedges, and the fixed-cost reduction program.
Quarterly revenue rose to EUR62.38 billion from EUR55.05
billion, beating analysts' expectations of EUR62.28 billion,
according to estimates recorded by FactSet.
For 2021, Volkswagen said it now expects an operating return on
sales between 5.5% and 7.0% compared with a previous guidance range
of between 5.0% and 6.5%. Full-year deliveries and revenue are
expected to be significantly higher than in 2020.
"Challenges will arise particularly from the economic situation,
the increasing intensity of competition, volatile commodity and
foreign-exchange markets, securing supply chains, and more
stringent emissions-related requirements," the car maker said. It
expects the semiconductor shortage to be worse in the second
quarter than it has been so far.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
May 06, 2021 02:06 ET (06:06 GMT)
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