Volkswagen's Woes Deepen as Blue-Chip Index Exit Follows Latest Profit Warning
Volkswagen's (VW) ongoing challenges have taken another turn, as the automaker faces the departure of its stock from the blue-chip index, following its latest profit warning.
Deutsche Bank analysts have assessed the cut to VW's operating profit forecast as severe, but maintain that it will not significantly impact the company's cash generation.
Volkswagen's Operating Profit Forecast Cut: Deutsche Bank Analyst View
Analysts at Deutsche Bank have commented on VW's recent operating profit forecast cut, stating that the reduction appears severe.
However, the experts reassure that the negative impact on the company's cash generation remains minimal.
VW Stock Exits Blue-Chip Index
VW's stock has been removed from the blue-chip index, indicating the growing concerns among investors regarding the automaker's financial performance.
The company's recent profit warning and reduced operating profit forecast have contributed to the decision.
VW's Profit Warning and Forecast Cut
Volkswagen issued a profit warning in October, revealing a projected decline in operating profit for 2021.
Recently, the automaker has also cut its operating profit forecast for the year, adding to the concerns among investors and financial institutions.
Impact on Cash Generation
While the operating profit forecast cut has caused concern, Deutsche Bank analysts maintain that it will not have a significant impact on VW's cash generation.
This suggests that the company's core financial stability remains intact, albeit facing challenges in its short-term outlook.
<small>Source: CNBC — read the original story there.</small>