Volkswagen Financial Services' 2019 Operating Profit to be Significantly Higher
December 05 2019 - 5:29AM
Dow Jones News
By Max Bernhard
Volkswagen AG's (VOW.XE) financial-services division said
Thursday that its 2019 operating profit should be significantly
higher compared with last year due to cost-cutting efforts and a
rise in contracts.
The increased number of contracts and first savings from the
unit's cost-cutting program would result in a significant rise in
operating profit, said Frank Fiedler, chief financial officer of
Volkswagen Financial Services.
The cost cutting program, started in 2018, is expected to result
in annual savings of 1.3 billion euros ($1.4 billion) by 2025, the
unit said. It had previously expected annual savings of EUR850
million.
"We got off to such a good start [with the cost cutting program]
that this year we will already have savings of around EUR200
million," Mr. Fiedler said.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
December 05, 2019 05:14 ET (10:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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