AGL 5.71 Decreased By ▼ -0.04 (-0.7%)
ANL 8.91 Increased By ▲ 0.06 (0.68%)
AVN 79.00 Decreased By ▼ -0.50 (-0.63%)
BOP 5.26 Increased By ▲ 0.09 (1.74%)
CNERGY 4.73 Increased By ▲ 0.04 (0.85%)
EFERT 81.60 Increased By ▲ 0.50 (0.62%)
EPCL 51.00 Increased By ▲ 0.01 (0.02%)
FCCL 13.30 Decreased By ▼ -0.19 (-1.41%)
FFL 5.80 Decreased By ▼ -0.01 (-0.17%)
FLYNG 7.18 Decreased By ▼ -0.03 (-0.42%)
FNEL 4.81 Increased By ▲ 0.01 (0.21%)
GGGL 8.90 Increased By ▲ 0.20 (2.3%)
GGL 16.10 Increased By ▲ 0.35 (2.22%)
HUMNL 5.89 Increased By ▲ 0.04 (0.68%)
KEL 2.63 Increased By ▲ 0.05 (1.94%)
LOTCHEM 29.20 Decreased By ▼ -0.30 (-1.02%)
MLCF 25.07 Decreased By ▼ -0.23 (-0.91%)
OGDC 72.60 Increased By ▲ 0.15 (0.21%)
PAEL 15.35 Decreased By ▼ -0.05 (-0.32%)
PIBTL 5.10 Decreased By ▼ -0.05 (-0.97%)
PRL 16.40 Increased By ▲ 0.15 (0.92%)
SILK 1.08 Increased By ▲ 0.01 (0.93%)
TELE 9.38 Increased By ▲ 0.08 (0.86%)
TPL 7.40 Increased By ▲ 0.05 (0.68%)
TPLP 18.86 Decreased By ▼ -0.30 (-1.57%)
TREET 21.95 Increased By ▲ 0.10 (0.46%)
TRG 142.25 Decreased By ▼ -0.55 (-0.39%)
UNITY 17.21 Increased By ▲ 0.01 (0.06%)
WAVES 9.99 Decreased By ▼ -0.04 (-0.4%)
WTL 1.42 Increased By ▲ 0.04 (2.9%)
BR100 4,264 Increased By 15.9 (0.37%)
BR30 15,773 Increased By 11.3 (0.07%)
KSE100 42,491 Increased By 142.2 (0.34%)
KSE30 15,706 Increased By 73.5 (0.47%)
Business & Finance

Volkswagen sees strong rebound after 'containing' COVID

  • Sales, deliveries to recover significantly in 2021.
  • Eyes upper end of 5.0-6.5% margin target.
  • Shares hit fresh 13-month high.
Published February 26, 2021
Follow us

FRANKFURT: Volkswagen expects deliveries, revenues and margins to rebound strongly this year as the coronavirus pandemic eases, after an almost halving in profits in 2020 that was still better than the German carmaker originally expected.

The global No.2 after Toyota by cars sold, Volkswagen is spending tens of billions of euros to reinvent itself as a leader in the market for electric vehicles, where Tesla has stolen a march on established rivals.

"Last year, the Volkswagen Group succeeded in containing the effects of the pandemic on its business and laying important strategic foundations for its transformation at the same time," finance chief Frank Witter said on Friday.

Deliveries and sales, which were both hit by the pandemic in 2020, are seen up significantly this year, the company said, without being more specific. In 2020, sales fell 11.8% to 222.9 billion euros ($270.2 billion), while deliveries dropped 15.2%.

The operating margin is seen at the upper end of its 5.0-6.5% target range, Volkswagen said, up from 4.3% last year.

"The financial results now available are far better than originally expected and show what our company is capable of achieving, especially in a crisis," Witter said.

"We intend to carry over the strong momentum from the significantly better second half into the current year."

Shares in Volkswagen turned positive on the news and rose as much as 2.4% to a fresh 13-month high.

While the company has emerged from the hit to demand caused by the pandemic, a shortage of crucial semiconductors caused it to adjust production through February, joining other carmakers around the world that have suffered similar problems.

Despite the profit drop, Volkswagen recommended keeping its dividend to shareholders stable for 2020 versus 2019, when it paid 4.86 euros per preferred and 4.80 per ordinary share, beating analysts' estimate of 3.35 euros for preferred shares, according to Refinitiv data.

Comments

Comments are closed.

Volkswagen sees strong rebound after 'containing' COVID

Intra-day update: rupee records gains against US dollar

Ban on GMO soyabean: govt, importers take divergent positions

Finance Bill 2023: SEZs: FBR to withdraw turnover tax exemption

Country has ‘sufficient’ wheat, cabinet told

Musk says Twitter clash with Apple a ‘misunderstanding’

Dollar plunges to 3-month low vs yen as Powell says Fed to go slow

Encashment of SBLC: Resolve Hubco-CPHGC dispute, PM asks authorities concerned

Delay in import of spare parts: Haveli Bahadur Shah power plant faces closure

FCA for Oct 2022: Nepra to allow KE negative adjustment of Rs2.15/unit

Media campaigns: ECC approves Rs2bn TSG against Rs5bn demand