Volkswagen cuts $ 940 million in first-half losses and dividends


Volkswagen AG (VW) as an automobile assembly line worker resumes production at its headquarters factory in Wolfsburg, Germany, on Monday, April 27, 2020. Volkswagen is restarting production at its Wolfsburg City plant, with the world’s largest, labor leaders warning that the political collapse from the coronovirus epidemic may be more damaging than production disruptions.

Bloomberg

Volkswagen has reported an operating loss of 800 million euros ($ 940 million) for the first half of 2020 and cut its dividend in the form of car sales with a coronovirus epidemic.

This compares to a profit of 10 billion euros for the same period of the previous year. The group’s sales declined 23.2%, while deliveries fell 27.4% year-on-year, with a percentage difference in last year’s performance since May leading to a worldwide shutdown as demand for craters.

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

However, it warned that “competition, volatile commodity and increasing intensity of the foreign exchange market and more stringent emission-related requirements will also pose particular challenges,” Volkswagen said, adding that it still expected to be profitable for the full year. Does.

The first half was “the most challenging in our company’s history” due to the Kovid-19 epidemic, said Frank Witter, a member of the Group Board of Management responsible for finance and IT.

Witter said in a statement on Thursday, “At the same time, we introduced comprehensive measures aimed at reducing costs and achieving liquidity quickly, enabling us to limit the impact of the epidemic on our business to some extent. “

“Due to the positive trends exhibited in our business over the past few weeks and the introduction of several attractive models, we look cautiously optimistic for the second half of the year.”

Volkswagen shares are down 21.5% year-to-date.

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