VW says expects to be profitable in 2020 as first-quarter earnings drop

FILE PHOTO: A cartoon of a VW logo squashing the coronavirus is displayed on a building at Volkswagen’s headquarters to celebrate the plant’s re-opening during the spread of the coronavirus disease (COVID-19) in Wolfsburg, Germany April 25, 2020. REUTERS/Fabian Bimmer

FRANKFURT (Reuters) – Volkswagen (VOWG_p.DE) on Wednesday said it expected to be profitable on a full-year basis even as the coronavirus pandemic caused first-quarter earnings to plunge.

Earlier this month, Volkswagen Group said car sales dropped by 23% on the year, causing operating profit to tumble 81% in the January to March period, forcing the car and trucks manufacturer to withdraw its outlook for 2020.

In February Volkswagen had said it aimed to achieve customer deliveries in line with the previous year, revenue growth of 4% in 2020 and slightly higher passenger car deliveries.

Reporting by Edward Taylor; Editing by Michelle Martin

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