July 30, 2020 / 5:32 AM / 9 days ago

VW cuts dividend as H1 profits plunge on pandemic sales drop

FRANKFURT, July 30 (Reuters) - Volkswagen unveiled a first-half operating loss on Thursday after the carmaker suffered a 27% drop in vehicle deliveries due to the coronavirus pandemic, a step which forced to carmaker to slash its dividend.

Volkswagen predicted sales for the full year to significantly fall from 2019 levels, but added that as lockdowns eased, global sales have staged a gradual recovery.

The carmaker posted an adjusted operating loss of 800 million euros ($940 million) in the January to June period, down from a 10-billion euro adjusted operating profit in the year-earlier period, and said it will cut its dividend for 2019.

It proposed a dividend of 4.80 euros per ordinary share and 4.86 euros per preferred share, slashing its initial proposal of 6.50 euros per ordinary share, and 6.56 euros.

$1 = 0.8501 euros Reporting by Edward Taylor; editing by Thomas Seythal

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