Volkswagen Cuts Medium-Term Outlook For Operating Profit
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German carmaker Volkswagen on Monday cut its medium-term outlook for operating profit as the industry is being hit by a global downturn.
VW now expects operating profit before special items to grow by at least 25% in the 2016-2020 period, down from a previous forecast of more than 30%, slides for a presentation showed.
The Wolfsburg-based company also cut its forecast for medium-term sales growth to 20% from more than 25%.
Questions & Answers
Q.What was Volkswagen's previous operating profit growth forecast for the 2016-2020 period?
What was Volkswagen's previous operating profit growth forecast for the 2016-2020 period?
Volkswagen previously expected operating profit before special items to grow by more than 30% during the 2016-2020 period. This has now been reduced to at least 25% growth for the same timeframe.
Q.What is the new forecast for Volkswagen's medium-term sales growth?
What is the new forecast for Volkswagen's medium-term sales growth?
The new forecast for Volkswagen's medium-term sales growth is 20%. This is a reduction from their previous expectation of more than 25% growth.
Q.Why has Volkswagen reduced its medium-term outlook for operating profit and sales?
Why has Volkswagen reduced its medium-term outlook for operating profit and sales?
Volkswagen has cut its medium-term outlook because the automotive industry is currently being affected by a global downturn. This broader economic challenge is impacting their financial projections.