Volkswagen AG
VOW,
+2.30%
said Thursday that earnings dropped in the second quarter, but backed its full-year targets. The German auto maker said after tax profit came in at 3.91 billion euros ($3.99 billion), compared with EUR5.04 billion in the same period year-prior. Operating profit before special items fell 28% to EUR4.74 billion and the corresponding return on sales fell to 6.8% from 9.7%, as it booked around EUR2.4 billion in negative fair value effects mainly related to raw material hedging.
“Before these book value losses, the underlying performance even improved over a good 1Q 2022,” it said. Quarterly revenue rose 3.3% to EUR69.54 billion. For the full year, Volkswagen continues to expect revenue to be 8% to 13% higher than in the previous year and operating return on sales of between 7.0% to 8.5%. “The Group expects the product mix to normalize in 2H as the semi-conductor situation improves in combination with a strong order book,” said the car maker, adding that a “noticeable recovery of the monthly sales towards the end of 2Q additionally bodes well for H2 sales.” Write to Kim Richters at [email protected]
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