Volkswagen and Daimler both said Wednesday that they foresaw full-year profits despite taking a beating from the global virus crisis.
Julian Satterthwaite reports.
VW, Daimler foresee profits despite crisis
The world’s big carmakers have taken a beating as lockdowns shuttered plants and dealerships.
But Wednesday (April 29) saw two of Europe’s heavyweights offer some hope.
After a tough few months, Volkswagen says it still expects to be in profit for the full year.
Earlier this month the group said that sales were down by 23%, with operating profit down by four-fifths.
But the German giant this week restarted some production, marking the event with an image of its logo munching the coronavirus.
Wednesday’s comments suggest it does see light at the end of the tunnel.
Meanwhile Daimler says it expects a rise in full-year profits for its key Mercedes-Benz brand.
Though that is a bit of a technicality, with last year’s numbers weighed down by hefty one-off charges.
Analysts also cheered news that it hadn’t yet seen any spike in defaults by customers who bought cars on finance deals.
The firm is sticking to its dividend plans, and says it doesn’t need any state-backed loans.
The news from the automakers was among the positives on a mixed day for stocks.
Daimler shares were up over 2 percent in early trade, with VW up around 1%.
Both strongly outpaced the broader market.