AGL 5.95 Decreased By ▼ -0.13 (-2.14%)
ANL 9.26 Decreased By ▼ -0.14 (-1.49%)
AVN 80.82 Decreased By ▼ -0.64 (-0.79%)
BOP 5.20 Decreased By ▼ -0.07 (-1.33%)
CNERGY 4.86 Decreased By ▼ -0.04 (-0.82%)
EFERT 81.82 Increased By ▲ 0.27 (0.33%)
EPCL 53.94 Decreased By ▼ -0.06 (-0.11%)
FCCL 14.29 Decreased By ▼ -0.11 (-0.76%)
FFL 5.93 Decreased By ▼ -0.12 (-1.98%)
FLYNG 7.44 Decreased By ▼ -0.12 (-1.59%)
FNEL 4.95 Decreased By ▼ -0.05 (-1%)
GGGL 9.18 Decreased By ▼ -0.14 (-1.5%)
GGL 16.51 Decreased By ▼ -0.19 (-1.14%)
HUMNL 6.14 Increased By ▲ 0.45 (7.91%)
KEL 2.77 Decreased By ▼ -0.02 (-0.72%)
LOTCHEM 30.81 Increased By ▲ 0.26 (0.85%)
MLCF 27.45 Decreased By ▼ -0.34 (-1.22%)
OGDC 74.27 Increased By ▲ 0.27 (0.36%)
PAEL 15.98 Decreased By ▼ -0.21 (-1.3%)
PIBTL 5.21 Decreased By ▼ -0.02 (-0.38%)
PRL 17.01 Decreased By ▼ -0.28 (-1.62%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
TELE 10.00 Decreased By ▼ -0.04 (-0.4%)
TPL 7.65 Decreased By ▼ -0.05 (-0.65%)
TPLP 19.41 Decreased By ▼ -0.36 (-1.82%)
TREET 22.72 Decreased By ▼ -0.47 (-2.03%)
TRG 146.80 Decreased By ▼ -0.55 (-0.37%)
UNITY 17.09 Decreased By ▼ -0.10 (-0.58%)
WAVES 10.33 Decreased By ▼ -0.05 (-0.48%)
WTL 1.42 Decreased By ▼ -0.04 (-2.74%)
BR100 4,330 Increased By 3.4 (0.08%)
BR30 16,296 Increased By 46.9 (0.29%)
KSE100 42,904 Increased By 23.3 (0.05%)
KSE30 15,805 Decreased By -4.6 (-0.03%)
Follow us

FRANKFURT: German auto giant Volkswagen said Thursday its first quarter operating profit increased significantly in 2022, while warning that the “first effects” of the war in Ukraine were beginning to be felt.

The group’s operating profit, a measure of profitability closely watched by investors, rose to 8.5 billion euros ($9.3 billion) over the first three months of the year from 4.8 billion euros in the same period last year, according to preliminary figures.

The boost was down to strong “operating performance” and a positive effect of 3.5 billion euros thanks to hedges against the changing price of raw materials.

The turbulence on commodities markets could be traced back to the “ongoing war in Ukraine”, which has pushed up prices, Volkswagen said in a statement.

Supply chain impacts could also be seen, with deliveries from suppliers in Ukraine being limited.

The lack of critical car parts has already forced Volkswagen, along with other German carmakers, to curtail production at some plants, while exports to Russia have been halted.

Taiwan’s TSMC reports record first-quarter revenue

The course of the war and the impact on Volkswagen “cannot be predicted with sufficient certainty” but risked having a “negative impact” on the Wolfsburg-based group.

Volkswagen also said it delivered some 500,000 fewer cars in the first quarter of 2022 than in the previous year, a 22-percent drop.

The continued impact of the coronavirus pandemic, which has recently led to widespread lockdowns in China, a key market, also loomed over the auto manufacturer’s future performance.

As did the possibility of further disruption to supply chains “especially for semiconductors”, a key component in both conventional and electric vehicles.

The two effects already conspired to make business difficult for Volkswagen in 2021. Despite net profits rising by 75 percent to 15.4 billion euros, the 12-brand group delivered 600,000 fewer units last year, as lockdowns and shortages caused interruptions in production.

Comments

Comments are closed.

Volkswagen sees impact of Ukraine war despite profit bounce

Owned by resident Pakistanis: FBR starts taxing hundreds of foreign properties

Overnight reverse repo (ceiling) rate to be 17pc

Turkish cos to take up profit repatriation, taxation issues with PM

Energy sector: ADB sending mission for proposed policy-based loan

Policy rate hiked to 16pc to quell biting inflation

China’s Shenzhen Energy signs long-term LNG contract with BP

Argentina look to Messi to salvage World Cup bid

Alternative energy: PM urges Pak-Turkish collaboration

Jul-Oct period: Rs241.26bn authorised/disbursed under PSDP

PM, Erdogan hold one-to-one meeting