Volkswagen VW Brand Lifts Profit Margin Outlook; Announces EUR1.9 Billion Annual Savings
By William Boston
WOLFSBURG, Germany--On the back of strong sales turnaround in the U.S. and emerging markets as well as cost-cutting, Volkswagen AG's (VOW.XE) namesake brand slightly raised its profit outlook for the coming three years, citing strong sales of new SUVs and improved profitability.
The VW brand said Thursday at a news conference that it has raised its outlook for its operating profit margin to 4% to 5% by 2020, slightly higher than its previous guidance for a margin of 4%. The company has already achieved 1.9 billion euros ($2.25 billion) in improved earnings from annual savings from cost-cutting and efficiency measures, putting it on track to meet its target of boosting earnings by EUR3.7 billion by 2020.
Write to William Boston at William.Boston@wsj.com
(END) Dow Jones Newswires
November 30, 2017 08:57 ET (13:57 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.