Volkswagen AG raised its earnings outlook after a strong start to the year, while cautioning that the semiconductor shortage rippling through the industry will become more pronounced in the second quarter.
Operating return on sales is forecast at 5.5% to 7% this year, compared with a previous range of 5% to 6.5%, Europe’s largest automaker said May 6 in a statement. VW also raised its projection for net cash flow and net liquidity.
“We started the year with great momentum and are on a strong operational course,” Chief Executive Officer Herbert Diess said in the release.
