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BULLETIN: Volkswagen AG's Earnings Warning Has No Immediate Rating Effect Jul 04
Standard & Poors, July 2004
Abstract
NEW YORK (Standard & Poor's) July 23, 2004--Standard & Poor's Ratings Services said today that the earnings warning issued by Germany-based automaker Volkswagen AG (VW; A-/Negative/A-2) would not have any direct effect on VW's ratings, nor on those of its related entities, including Volkswagen Financial Services AG and Volkswagen Bank GmbH (both rated A-/Negative/A-2). Volkswagen announced weak operating profits of about -980 million for the first half of 2004, and indicated full-year operating profits--before substantial special items--are now expected to total only -1.9 billion. Although management reaffirmed the goal of break-even cash flow at its automotive division for full-year 2004, this is looking increasingly challenging. Accordingly, our concerns are heightened about the company's ability to effect a turnaround. Nevertheless, we...
Companies mentioned in this report are: Volkswagen AG
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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