Volkswagen’s stock price hit its lowest point since April 2020 on Monday following the company’s decision to revise its profit margin expectations for the current year, leaving some investors disappointed.
The decline in profitability was attributed to adverse impacts from raw materials hedges. Europe’s largest automotive conglomerate had originally projected a return on sales ranging from 7.5% to 8.5%. However, the new outlook now anticipates a margin of 7.0% to 7.3%. Despite this adjustment, Volkswagen maintained its original forecasts for deliveries and sales.
By 07:32 GMT on Monday, Volkswagen shares had dropped by 2.9% in Frankfurt, making them the top decliners within the European auto sector, which experienced a 0.5% decrease overall.
