VW’s figures for the first quarter are below the targets for the full year. The result fell by almost 22 percent to 3.71 billion euros. But management is confident.
The Volkswagen Group started the new year weaker due to problems in China and burdened by model launches. Sales in the first quarter fell by one percent to almost 75.5 billion euros compared to the same period last year, as the Wolfsburg-based company announced.
The operating result fell by a fifth to 4.59 billion euros. The corresponding operating margin fell by 1.4 percentage points to 6.1 percent and, as already announced by management, was below the targets for the full year. The group’s profit after taxes fell by almost 22 percent to 3.71 billion euros. The management around boss Oliver Blume confirmed the annual forecasts.
VW attributes the weaker operating result to lower sales volume, a less favorable sales mix of brands and models and higher fixed costs. The market launch of new models at the profitable Porsche and delivery bottlenecks at Audi put a strain on the Group’s figures. The group with the mass brands VW Passenger Cars, Seat, Skoda and VWN, however, earned more than a year earlier.
“A strong March, the solid order situation and the improving order intake in recent months are encouraging and should already have a positive impact in the second quarter,” said VW finance chief Arno Antlitz, according to the statement. According to him, the savings and results programs in the group’s brands should gradually take effect over the course of the year.
Source: Stern
