Volkswagen warns of outlook due to Russia-Ukraine conflict

Volkswagen on Thursday warned that it was experiencing the impact of the ongoing conflict between Russia and Ukraine due to the disruption in supply chains and raw materials prices in the first quarter.

The automaker sees possibilities of longer-term effects on its business which makes it difficult to predict.

The automaker indicated an 8.5 billion euro ($9.27 billion) operating profit for the first three months of this year, but noted that 3.5 billion euros of the amount was attributable to commodity hedges amid increasing raw material prices.

Volkswagen Group deliveries declined 21.9% from January to March, amounting to just over 1.89 million vehicles, with brand deliveries dropping 25.6%.

Still, deliveries of all-electric vehicles increased 65% to 99,100, with the biggest increase in China.

Volkswagen is set to publish first-quarter results on May 4.