Volkswagen sees capex ratio low, depreciation high

Newswire

FRANKFURT, Oct 27 (Reuters) - Volkswagen expects its capex-to-sales ratio will remain as low as around 4 percent in 2006, but "reasonably high levels" of depreciation will continue to eat away at its earnings over the next two years, its finance chief said during a conference call on Friday. VW's efforts to drastically rein in investments has led to a significant improvement in its automotive net cash flow. Its automotive capex ratio fell to just 3.1 percent of sales in the first nine ...

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