Despite a fifth drop in deliveries in the second quarter, the Volkswagen Group is sticking to its prior-year profit guidance and expects deliveries to recover as supply shortages ease.
Despite the drop in deliveries, VW Group’s sales revenue rose 3.3 percent to 69.5 billion euros in the second quarter, driven by strong pricing actions. However, operating profit (before special items) fell by 27.7 percent to 4.7 billion euros.
“Despite unprecedented global challenges, Volkswagen has demonstrated remarkable financial strength. Operating margin in the first half of the year reflects strong product substance and proportionately higher sales in the premium segment. In addition, the volume group has proven that it can deliver good results even in a challenging environment,” said CFO Arno Antlitz.
BEV demand continued to grow rapidly in the second quarter, with order intake in Western Europe for the first half of 2022 up 40 percent year-on-year. Despite supply delays, a temporary production shutdown in Europe and a Covid-related lockdown in China, 118,000 BEVs were delivered in the second quarter – representing a 6 percent share of total deliveries. In the first half of the year, BEV deliveries increased by 27 percent to 217,000 vehicles.
Volkswagen added production capacity for the ID.4 in Emden, Chattanooga, and the ID. Buzz in Hannover in the second quarter to support the planned increase in global BEV production in the second half of the year and beyond.
Volkswagen Group has confirmed its outlook for 2022 due to the easing of supply constraints. The wiring harness supply has been successfully restored and is mostly back to normal, it said. The group expects the product mix to normalize in H2 as the semiconductor situation improves along with a strong order book. According to VW, a marked recovery in monthly sales towards the end of second Q2 bodes well for H2 sales.
However, VW warned that it is not yet possible to definitively assess the specific effects of the war in Ukraine or the impact of the Covid-19 pandemic on the Volkswagen Group’s business, the global economy and industry growth in the 2022 fiscal year. In Europe, in particular, there is uncertainty regarding the energy supply, VW said.
Volkswagen Group predicts sales growth in H2
Source link Volkswagen Group predicts sales growth in H2