By Ed Frankl
Volkswagen AG said first-quarter earnings would be considerably higher year-on-year, though cautioned on the continuing effects on exchange rates and commodity markets from the war in Ukraine.
The German auto maker said quarterly operating profit before special items was around 8.5 billion euros ($9.26 billion), with an operating return on sales of around 13.5%, based on preliminary data. VW posted EUR4.8 billion in operating profit in the same three months last year.
Net cash flow in the automotive division was around EUR1.5 billion.
The Wolfsburg-based company said the effects of the war in Ukraine still can’t be predicted with “sufficient certainty”.
“There is therefore still a risk that further developments in the Ukraine war will have a negative impact on the Volkswagen Group’s business activities,” it said
The car maker also said there had been a significant impact on exchange rates, developments in the commodity market remain unpredictable, and that supply bottlenecks could arise from the crisis.
VW also warned on the possibility of supply constraints on semiconductors should the pandemic situation worsen.
The company expects to post full results on May 4.
At 0820 GMT shares were flat.
Write to Ed Frankl at email@example.com