By Victoria Waldersee
- Volkswagen posts 8.1% earnings margin in 2022, hits forecast
- Sales, earnings above 2021 levels
- Net cash flow approx 3.6 bln eur below target
- Carmaker sitting on unfinished goods, raw materials
- Expect lower working capital in 2023 -statement
BERLIN, Feb 7 (Reuters) – Volkswagen AG’s (VOWG_p.DE) earnings margin was at the upper end of its forecast for 2022 at 8.1%, with sales and earnings above 2021 levels despite supply-chain turmoil dragging its net cash flow far below target, the carmaker said on Tuesday.
Earnings of 22.5 billion euros ($24.11 billion) put Volkswagen at the higher end of the 7-8.5% margin it had forecast in March of last year, with sales beating 2021 figures at around 279 billion euros compared with 250.2 billion the year prior.
“Current planning for 2023 suggests that this year-end 2022 increase in working capital will largely reverse during the year,” it added in its statement.
Chief Financial Officer Arno Antlitz said in October that the carmaker had 150,000 unfinished vehicles in its inventory and was stocking up on supplies to protect against further shortages, pushing up prices and cutting costs to make up for lower unit sales.
Volkswagen also warned in January that the outlook for 2023 remained clouded by weak economies and supply-chain shortages.
($1 = 0.9331 euro)