FRANKFURT: Volkswagen reported on Friday that its 2020 profit almost halved due to the impact of the pandemic, but a rebound in premium car sales in China and stronger deliveries in the fourth quarter helped keep the world's largest carmaker in the black.
Net cash flow at its automotive division was around €6 billion and car deliveries picked up towards the end of the year, the German group said in a statement. The full-year performance caps a turbulent 2020 for Volkswagen and the auto industry. A pandemic-fuelled sales slump lead to a loss in the second quarter before Volkswagen swung back to profitability in the third quarter on the back of soaring demand for luxury vehicles in China, the world's largest car market.Volkswagen's shares hit their highest level in 11 months after Friday's earnings release. They were up 2.7 per cent at €166.4 in early afternoon trading.
"The magnitude of the beat is welcome and supportive of upcoming full-year results across the industry," analysts at Jefferies wrote.
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