Volkswagen shares climb 6% on sales forecasts of €331bn

VW predicts a strong sales recovery and a 14% rise in deliveries as global supply chain issues ease

VW sees revenues rising by up to 15%, and says its dividend would rise by €1.20 apiece to €8.70 per common share and €8.76 for preferred shares. File picture: Kai-Uwe Knoth/AP

Volkswagen has said it expects supply chain issues to ease and sales to rise to as much as €331bn in 2023, sending shares in Europe’s top carmaker to their highest level in nearly three months.

VW’s outlook, which comes after preliminary 2022 results published last month, also foresees a strong recovery of vehicle deliveries to 9.5m, an increase of more than 14% year-on-year.

“Our performance last year demonstrated the improved resilience of the Volkswagen Group amid a challenging

global backdrop,” chief financial officer Arno Antlitz said.

“We expect the supply chain bottlenecks to gradually ease in the current year, allowing us to service the high order backlog,” he said.

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Shares in the company rose 6% to the top of Frankfurt’s benchmark Dax index.

Volkswagen’s revenues are forecast to grow by 10% to 15%, indicating 2023 sales of €307bn to €331bn.

The group’s operating return on sales is expected to be in the range of 7.5% to 8.5%, compared with 7.9% in 2022, Volkswagen said, adding its dividend would rise by €1.20 apiece to €8.70 per common share and €8.76 per preferred share for 2022.

According to Refinitiv estimates, holders of Volkswagen’s preferred shares were expected to get a dividend of €8.46 apiece.

• Reuters