The pandemic of the coronavirus feel their negative effects also on the giant in the sector as the group Volkswagen. The German manufacturer has closed the first-half loss and has therefore decided to propose to its shareholders a substantial cut in dividends.
Data. Specifically, the group has recorded between January and June, a decline of the global delivery of 27.4% to 3.9 million units and, therefore, has suffered a decline in revenues of 23.2% to 96.1 billion euros. The operating result, adjusted for extraordinary items, is therefore passed from a profit of 10 billion to a loss of 800 million. Considering the non-recurring items, such as the 700 million of charges related to the dieselgate (down from billion a year ago), operating loss stood at 1.49 billion (profit of 9 billion). The last line of the income statement shows a red 1.4 billion (net profit of 9.6 billion in the second quarter of 2019). Only in the second quarter net loss of 1,61 billion (profits to 3,96 billion in the same period of last year) and operating loss of 1.71 billion (net profit of 5.13 billion a year ago).
Cuts to dividends. As all the other great builders, also of Wolfsburg, has had to face in the period a heavy absorption of resources: the car business and have registered cash outflows for 4.8 billion. However, the net financial position, thanks also to the issuance of particular bonds for 3 billion euro, shows a surplus of 18.7 billion, up from 17.8 billion at the end of march. Nevertheless, and taking into account “the scope and magnitude of the impact” of the crisis and of the current inability to estimate reliably future developments”, the company management has decided to cut the dividend to distribute to rely on the financial statements of 2019. At the annual general meeting of shareholders (postponed to 30 September) will be proposed for authorization to pay a coupon of 4.8 euros for each ordinary share and not more than 6.5 euros.
Prospects. Volkswagen has not provided detailed directions for the rest of the year, simply confirm the forecast on annual sales and revenues “significantly” lower than the 2019 and the operating profit was “much” below the value of last year, but still positive. Do not however, have also been expressions of optimism on the part of management: “The first half of 2020 was one of the most challenging in the history of our company because of the pandemic of the Covid-19,” said chief financial officer Frank Witter. “By virtue of the positive trend recorded by our activities in the last few weeks, and in the light of the launch of many interesting models, we look with cautious optimism to the second half of the year”. In this regard, the company explained that the April deliveries were down 45%, but the decline was reduced in June to 18% thanks to a recovery in demand, especially in Europe, which continued also in July and it is expected that in the continuous recovery in the second half of the year.
Source: Quattroruote.en – Edited by Anthon K.