Volkswagen 'satisfied' with Q1 despite profit slump

Volkswagen 'satisfied' with Q1 despite profit slump

FRANKFURT - Embattled German auto giant Volkswagen said Tuesday that it was satisfied with business in the first quarter, despite falling sales and profits, and it would stick to its targets for the whole year.

Volkswagen's net profit slumped by 20.1% to 2.31 billion euros in the period from January to March, on a 3.4-percent decline in sales to 50.96 billion euros

"The VW group put in a solid performance in the first three months," the statement said.

"In view of the many challenges we're currently facing, we're satisfied overall with the start we made into what will undoubtedly be a challenging year," said chief executive Matthias Mueller.

"We have succeeded in limiting the economic fallout from the diesel scandal and chalk up respectable results in very difficult conditions," he said.

VW, currently engulfed in a massive emissions-cheating scandal, said net profit slumped by 20.1% to 2.31 billion euros ($2.6 billion) in the period from January to March, on a 3.4% decline in sales to 50.96 billion euros.

Underlying or operating profit rose by 3.4% to 3.44 billion euros, meaning the operating return on sales rose to 6.8% from 6.3%.

The number of vehicles sold edged up by 0.8% to 2.508 million units worldwide.

In view of the first-quarter performances, VW said it was "confirming our forecast for the whole year," with overall sales set to decline by "up to five percent."

The operating return on sales was projected to come out between 5.5 and 6.5%.

VW is currently engulfed in a global engine-rigging scandal after it was revealed last September that it had installed emissions-cheating software in 11 million diesel engines worldwide.

Do you like the content of this article?
COMMENT

Heavy rain continues until Tuesday

Heavy rain will continue until Tuesday after it caused runoff and floods in several provinces from Wednesday night, according to the weatherman.

14:32

More charges

The digital minister moves to prosecute three major social media service providers for failing to remove anti-monarchial messages they were were warned about, and the student protesters who posted them.

13:40

Airports deploy rapid virus tests, sniffer dogs to unlock travel

LONDON: A handful of European airports are implementing trials of quick-fire coronavirus tests, working with airlines to push technologies still being developed as a way to revive stunted international air travel.

12:41