Volkswagen Misses Full-Year Cash Target After Supply Chain Woes

Volkswagen AG missed its 2022 cash flow target, saying supply-chain disruptions led to higher-than-expected inventories.

(Bloomberg) — Volkswagen AG missed its 2022 cash flow target, saying supply-chain disruptions led to higher-than-expected inventories.

The German automaker reported preliminary cash flow of around €5 billion (US $5.36 billion) for the year, below its target for around €8.6 billion, according to a statement late Tuesday.

Supply-chain troubles left the company with more finished goods, raw materials and supplies at the end of the year, according to the statement. The carmaker expects that to reverse during 2023.

Volkswagen had to contend with a series of challenges last year, including lingering supply-chain stresses and a wave of Covid-19 infections in China that led to production shutdowns following the country’s reopening.

The company said 2022 revenue and operating profit were in line with its most recent guidance. Sales came in at €279 billion, beating the Bloomberg consensus estimate of €278 billion. Operating profit before special items came in at €22.5 billion, falling just short of the Bloomberg estimate of €23 billion.

Read more: VW Sees Growing Challenges Next Year on Inflation, Downturn

(Updates with company comment starting in first paragraph.)

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