FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CONSUMER CYCLICALS: Volkswagen (VW A3/BBB+/A-): 2Q24 Results

CONSUMER CYCLICALS

Looks credit negative to us. Sizeable revision to FY cash flow guidance, well below consensus. Net liquidity now expected to deteriorate YoY. It says outlook confirmed confusingly, we assume this refers to revenue and margin guidance only.

  • Volkswagen revenue came in-line with consensus at +4% YoY. China continues to decline, with the Americas doing better.
  • Adj. EBIT was marginally better than expected; margin fell to 6.6%.
  • 1H FCF reached -€0.1bn, implying +€2.9bn for 2Q reversing the 1Q move. Net liquidity fell to €31.3bn from €37.2bn on annual dividend, Rivian investment and restructuring costs.
  • Automotive cash flow guidance cut to €2.5-4.5bn and liquidity to €37-39bn (both €2bn lower). Follows the margin warning in July due to restructuring.
  • Webcast 08.00 BST https://www.webcast-eqs.com/volkswagen-2024-h1
BulletCredit Bullets
BulletCredit Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.