Volkswagen ( OTCPK:VWAGY ) lamented continued impacts from geopolitical turmoil and supply bottlenecks during its third quarter earnings release.
For the third quarter, the company notched GAAP EPS of €3.90 alongside €70.71B in sales. The German automaker said that deliveries to customers were down 12.9% from the prior year quarter due to parts shortages. Additionally, the automaker took a €1.9B impairment loss related to Argo AI.
The shortages were largely blamed on the Zero-COVID policy in China and rippling impacts from the Russia-Ukraine conflict.
“In addition to the uncertainty and measures being taken around the world to deal with the Covid-19 pandemic, persistent semiconductor shortages and the resulting limited availability of Group models meant that demand could not be adequately met in some regions,” the company said. “From late February 2022 onwards, the RussiaUkraine conflict also created further parts supply shortages and greater uncertainty in the markets.”
Moving forward, the auto group anticipates sales revenue for the full year to be up 8% to 13%, led by the Passenger Cars expected to rise 5% to 10%. Total deliveries are expected to be in-line with 2021 levels.
Volkswagen shares fell 2.71% in afternoon trading in Germany.
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Supply chain problems stymie Volkswagen earnings