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Germany's Volkswagen shares tumble after margin downgrade

Published 10/23/2023, 03:40 AM
Updated 10/23/2023, 03:45 AM
© Reuters. FILE PHOTO: The logo of German carmaker Volkswagen is seen on a rim cap in a showroom of a Volkswagen car dealer in Brussels, Belgium July 9, 2020. REUTERS/Francois Lenoir/File Photo
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(Reuters) - Volkswagen (ETR:VOWG_p) shares fell to their lowest since April 2020 on Monday after the German carmaker cut its profit margin outlook for the current year, disappointing some investors.

© Reuters. FILE PHOTO: The logo of German carmaker Volkswagen is seen on a rim cap in a showroom of a Volkswagen car dealer in Brussels, Belgium July 9, 2020. REUTERS/Francois Lenoir/File Photo

Blaming negative effects from raw materials hedges, Europe's largest automotive group on Friday indicated a return on sales of 7.0-7.3%, down from 7.5-8.5% forecast previously. Volkswagen kept its outlook for deliveries and sales.

Volkswagen shares fell 2.9% in Frankfurt by 0732 GMT, leading fallers across the European auto sector, which was down 0.5%.

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