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Home / Business / Volkswagen puts $ 940 million in first-half losses and reduces the dividend

Volkswagen puts $ 940 million in first-half losses and reduces the dividend



A car assembly line worker wears a face mask as Volkswagen AG (VW) resumes production at the factory at their headquarters in Lolfsburg, Germany, on Monday, April 27, 2020. Volkswagen is resuming production at its world-largest Wolfsburg car plant, with Labor leaders warning that a political departure from the coronavirus pandemic could be more damage from production disruption.

Bloomberg

Volkswagen reported an operating loss of 800 million euros ($ 940 million) for the first half of 2020 and reduced its dividend as car sales with the watered down coronary pandemic.

This compares with a profit of 1

0 billion euros for the same period last year. Sales by the group fell 23.2% while deliveries fell 27.4% year-over-year, the percentage difference for last year’s performance has narrowed consistently since May as closings around the world caused demand for the crater.

At its annual general meeting in September, the German auto producer will now propose a dividend per ordinary share for fiscal year 2019 of 4.80 euros, down from the previously announced 6.50 euros.

Although he warned that “challenges will also arise particularly from the increasing intensity of competition, volatile commodity and foreign exchange markets and stricter emission-related requirements,” Volkswagen said it still expects it to be profitable for the whole year.

Frank Witter, a member of the Group’s Board of Directors responsible for Finance and IT, said the first half was “one of the busiest in our company’s history” due to the Covid-19 pandemic. .

“At the same time, we have introduced comprehensive measures aimed at reducing costs and ensuring liquidity early on, which has allowed us to limit the impact of the pandemic on our business to some extent,” Witter said in a statement. statement Thursday.

“Given the positive trend exhibited in our business over the past few weeks and the introduction of many attractive models, we look optimistically for the second half of the year.”

Volkswagen shares are down 21.5% year to date.


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