VW shares surge on higher profits, outlook
By Frank Prenesti
Date: Monday 14 Mar 2022
(Sharecast News) - Shares in German automaker Volkswagen surged on Monday after the company reported bumper 2021 profits, but warned of potential impact from the Ukraine war.
The results and guidance for the current year after the market close on Friday. Operating profit almost doubled to €20bn, while sales revenue rose 12% year on year to €250.2bn driven by better mix and favourable pricing, but did warn of potential impacts on trading from the Ukraine war.
Post-tax profits increased to €15.43bn from €8.82bn.
VW said group vehicle sales fell 6.3% to 8.6 million units due to global semiconductor shortages, but added that global deliveries of battery-electric vehicles almost doubled to 452,900.
Looking ahead, VW said that given "continuing challenging market conditions", deliveries to customers in 2022 will be up 5 - 10% up on the previous year.
"This assumes that the Covid-19 pandemic will not flare up again and that shortages of intermediate products and commodities will become less intense," the company said.
"The 2022 fiscal year will continue to be affected by shortfalls in supply due to the structural shortage of semiconductors. The supply of semiconductors is anticipated to improve in the second half of the year, compared with the first half."
It also forecast sales revenue to be 8 -13% higher and an operating return on sales in the range of 7 - 8.5% for 2022.
"However, this guidance is subject to the further development of the war in Ukraine and in particular the impact on the group's supply chains and the global economy as a whole. At the time of preparing this outlook, there is a risk that the latest developments in the war in Ukraine will have a negative impact on the Volkswagen Group's business," the company said.
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