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Volkswagen cuts dividend as first-half profits plunge on pandemic sales drop

Published 07/30/2020, 01:42 AM
Updated 07/30/2020, 01:45 AM
© Reuters. Volkswagen Touareg is seen in a showroom of a Volkswagen car dealer in Brussels
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FRANKFURT (Reuters) - Volkswagen (DE:VOWG_p) unveiled a first-half operating loss on Thursday after the carmaker suffered a 27% drop in vehicle deliveries due to the coronavirus pandemic, a step which forced to carmaker to slash its dividend.

Volkswagen predicted sales for the full year to significantly fall from 2019 levels, but added that as lockdowns eased, global sales have staged a gradual recovery.

The carmaker posted an adjusted operating loss of 800 million euros ($940 million) in the January to June period, down from a 10-billion euro adjusted operating profit in the year-earlier period, and said it will cut its dividend for 2019.

© Reuters. Volkswagen Touareg is seen in a showroom of a Volkswagen car dealer in Brussels

It proposed a dividend of 4.80 euros per ordinary share and 4.86 euros per preferred share, slashing its initial proposal of 6.50 euros per ordinary share, and 6.56 euros.

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