Berlin, Germany– German auto giant Volkswagen posted higher operating profits and sales in 2022, in line with its forecasts, but missed its cash flow target due to supply problems, according to preliminary figures published Tuesday.
Operating profit before exceptional items rose by 12.5 percent to around 22.5 billion euros ($24 billion) and revenues were up 11.5 percent at 279 billion euros, a statement said.
Volkswagen had forecast an increase of between 8.0 and 13.0 percent.
Earnings rose despite a drop in sales, with Volkswagen reporting at the beginning of the year a seven percent drop in the number of vehicles sold in 2022.
The world’s number two automaker will publish full results on March 14.
Cash flow at 5 billion euros was well below the target of 8.6 billion euros.
“This gap is mainly due to supply instability throughout 2022 and to supply chain disruptions, particularly at the end of the year,” Volkswagen said.
As a result, “working capital and in particular inventories of finished products, raw materials and supplies at the end of the year were significantly higher than expected,” it said, forecasting an improvement in the situation in 2023.