© Reuters. The logo of the German car manufacturer Volkswagen can be seen on the car in a showroom of a Volkswagen car dealership in Brussels
By Christoph Steitz and Jan Schwartz
FRANKFURT (Reuters) – Volkswagen (DE 🙂 expects deliveries, sales and margins to rebound strongly this year as the coronavirus pandemic subsides after almost halving profit sharing in 2020, which was still better than originally from the German Car maker expected.
Volkswagen is the world's number 2 car sold after Toyota, spending tens of billions of euros to reinvent itself as the market leader in electric vehicles, where Tesla (NASDAQ 🙂 stole a march against established competitors.
"Last year the Volkswagen Group managed to contain the effects of the pandemic on its business and at the same time lay important strategic foundations for its transformation," said CFO Frank Witter on Friday.
Deliveries and sales, both of which were affected by the pandemic in 2020, have increased significantly this year, without being more specific. In 2020, sales were down 11.8% to EUR 222.9 billion ($ 270.2 billion), while shipments were down 15.2%.
According to Volkswagen, the operating margin is at the upper end of the target range of 5.0 to 6.5% after 4.3% in the previous year.
"The financial results now available are far better than originally expected and show what our company can achieve, especially in a crisis," said Witter.
"We want to transfer the strong momentum from the significantly better second half of the year to the current year."
Volkswagen shares got positive on the news, rising 2.4% to a new 13-month high.
While the company has grown out of demand created by the pandemic, a shortage of key semiconductors resulted in production being adjusted through February, joining other automakers around the world suffering from similar problems.
Despite the decline in earnings, Volkswagen recommended keeping the dividend to shareholders for 2020 stable compared to 2019, when 4.86 euros per preferred share and 4.80 euros per common share were paid, which, according to Refinitiv data, the analysts estimate of 3, Exceeds 35 euros for preference shares.
($ 1 = 0.8260 euros)
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