Volkswagen Maintains Profits In 2018, Warns About 2019.
“The headwinds in are expected to strengthen further in 2019”
Volkswagen reported stagnant operating profit for 2018 of 13.92 billion euros ($15.79 billion), 0.7% ahead of the previous year, and warned investors that the year ahead will be tough.
Investors worry there might be a tariff war between Europe and the U.S. this year, while Germany and Europe could slide into recession. If Britain leaves the EU on March 29 without a deal, that could disrupt European trade and supply chains. And the industry is making massive investments in electric and autonomous cars, with possible profits a long way off.
VW said its profit performance in 2018 was held back by foreign currency problems and supply bottlenecks after a changeover in EU rules governing fuel consumption.
VW said for 2019 revenues will grow 5%, while profitability will range between 6.5% and 7.5%.
VW increased sales a bit in 2018 to 10.83 million from 10.74 million the previous year.
Investment bank Nord LB said it expects VW to raise its sales in 2019 by up to 2% to around 11 million.
“The headwinds in key markets are expected to strengthen further in 2019. Overall, however, we will have to redouble our efforts to meet our ambitious targets in the new fiscal year,” VW Group CEO Herbert Diess said in a statement.
More detailed numbers will be reported by VW on March 12.