VW Sees Profit Surge on $3.8 Billion Hedging Boost
- Commodity hedging positions rise in value as prices jump
- First-quarter profit also strong on robust performance
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Volkswagen AG’s commodity trading profits are outshining carmaking earnings after the company’s nickel hedging position surged in value following last month’s historic short squeeze.
Gains in commodity hedging positions will add 3.5 billion euros ($3.8 billion) to first-quarter earnings, Europe’s biggest automaker said Thursday. Total operating profit before special items is expected to almost double in the period to 8.5 billion euros, with strong operational performance also driving returns.