Volkswagen’s quarterly revenue fell 2.8 times

Operating income fell by nearly 42% to €2.855 billion. Revenue fell 0.5% to 78.478 billion euros.

In the third quarter, German automaker Volkswagen reduced its profit after tax by 2.8 times to 1.576 billion euros compared to 4.347 billion euros in the same period last year. This is stated in the company’s reporting.

It was noted that the operating profit decreased by almost 42% and reached 2.855 billion euros. Operating margin fell to 3.6% from 6.2% last year. Revenue fell 0.5% to 78.478 billion euros.

According to analysts polled by FactSet, the company is expected to report an operating profit of 2.86 billion euros on revenue of 75.63 billion euros.

As reported, sales of vehicles of the VW group in the last quarter decreased by 8.3% (up to 2.122 million), production – by 6.8% (up to 2.025 million). Sales of cars in January-September decreased by 4.4% (up to 6.463 million), production – by 3.4% (up to 6.632 million).

The company intends to receive revenue of approximately 320 billion euros by the end of 2024 (compared to 322.3 billion euros last year). Operating income is expected to be around 18 billion euros, profitability is expected at 5.6%. Customer vehicle deliveries are forecast to decline to about 9 million this year, from 9.24 million in 2023.

Recall that Volkswagen has announced tough cost-cutting measures, including closing at least three factories in Germany, reducing employee pay and outsourcing some departments abroad.

It was previously reported that Volkswagen has abandoned labor agreements that guaranteed the preservation of jobs until 2029.

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