Volkswagen (ETR:VOWG_p) saw its share prices plummet to their lowest point since April 2020 on Monday, triggered by the German automaker’s revision of its profit margin projection for the current year. This unexpected announcement left some investors disheartened.
Citing adverse impacts stemming from raw materials hedging, Europe’s largest automotive conglomerate indicated a revised return on sales projection of 7.0% to 7.3%. This adjustment was a substantial decrease from its prior forecast of 7.5% to 8.5%. Volkswagen, however, maintained its existing outlook for deliveries and sales.
As a result of this announcement, Volkswagen shares experienced a sharp decline of 2.9% in Frankfurt by 0732 GMT. This drop placed Volkswagen at the forefront of decliners within the European automotive sector, which witnessed a collective decrease of 0.5%.
The company’s move to trim its profit margin expectations has generated concerns among investors and analysts alike, who are closely monitoring how Volkswagen will navigate these challenging conditions in the coming months.
