Germany’s Volkswagen shares tumble after margin downgrade

(Reuters) – Volkswagen (ETR:) shares fell to their lowest since April 2020 on Monday after the German carmaker cut its profit margin outlook for the current year, disappointing some investors.

Blaming negative effects from raw materials hedges, Europe’s largest automotive group on Friday indicated a return on sales of 7.0-7.3%, down from 7.5-8.5% forecast previously. Volkswagen kept its outlook for deliveries and sales.

Volkswagen shares fell 2.9% in Frankfurt by 0732 GMT, leading fallers across the European auto sector, which was down 0.5%.