Volkswagen Q2 profits fall, lowers FY guidance

(Sharecast News) - German automotive giant Volkswagen lowered FY guidance on Friday as it said Q2 profits had fallen, principally due to elevated costs stemming from Donald Trump's so-called "reciprocal" tariffs. Volkswagen reported a 29% year-on-year drop in operating profits to €3.83bn euros as Q2 sales revenues of €80.8bn fell short of analysts' expectations of €82.2bn.

Volkswagen also said its FY25 operating return on sales was now pegged to be between 4% and 5%, down from previous guidance of 5.5% to 6.5%. FY sales were expected to be broadly flat year-on-year, compared to previous forecasts of an increase of as much as 5%.

The Berlin-based firm also noted that it expects US import tariffs of 27.5% to continue to apply in H2, and acknowledged that there was still "high uncertainty" when it came to US trade policy.

As far as H1 was concerned, Volkswagen said vehicle sales had grown 19% in South America, 2% in Western Europe and 5% in Central and Eastern Europe, offsetting expected declines of 3% in China and 16% in North America. Also of note, Volkswagen said H1 order intake for all-electric vehicles had surged by 62% year-on-year.

As of 1110 BST, Volkswagen shares were down 1.17% at €94.86 each.



Reporting by Iain Gilbert at Sharecast.com