Volkswagen Expects Revenue Growth to Slow This Year — Update
By Dominic Chopping
Volkswagen expects revenue growth to slow this year as it faces a tough economic backdrop and increasing competition, but a large number of new product launches and more favorable cost trends should provide a tailwind, it said Friday.
Shares fell on the news. At 1424 GMT, shares traded 5.2% lower at EUR118.92.
The German carmaker forecasts revenue growth of up to 5%, a slower pace than the 15% it reported for 2023, while the operating margin is guided at between 7% and 7.5% from 7% in the previous year.
Volkswagen has been working through cost-savings programs as well as a 10-point plan to speed up the process of moving away from combustion-engine vehicles and it said the "clean-up work" has now been completed.
"The main course has been set for the restructuring of the Volkswagen Group. We can build on this in 2024 and have a solid basis for an accelerated ramp-up from 2025," Chief Executive Oliver Blume said.
The auto group reported full-year adjusted operating profit of 22.58 billion euros ($24.40 billion) on group sales revenue of EUR322.28 billion, beating FactSet-provided analysts' forecasts on both metrics.
It reported a dividend of EUR9 per ordinary share and EUR9.06 per preferred share, up from EUR8.70 and EUR8.76, respectively, in 2022.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
March 01, 2024 10:00 ET (15:00 GMT)
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