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Opel Warns on 2016 Profit Goal
Opel AG says the uncertainty of the U.K.’s vote to exit the European Union makes it unlikely the company will break even this year, Reuters reports.
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Opel AG says the uncertainty of the U.K.’s vote to exit the European Union makes it unlikely the company will break even this year, Reuters reports.
CEO Karl-Thomas Neumann tells a conference in Berlin that Brexit adds to the negative impact of the company’s withdrawal last year from the Russian market. The two factors make Opel’s path toward breakeven “difficult” this year, he says.
The European operations of General Motors Co., Opel’s parent, posted a pretax profit of $137 million—its first in five years—in the second quarter. But GM cautioned at the time that currency effects and Brexit-related disruptions could cut $400 million from results in the second half of 2016. The company reported a $142 million pretax loss in Europe for July-September.
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