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Volkswagen profits up in Q1 2017

Xinhua, May 3, 2017 Adjust font size:

The profits of German automaker Volkswagen in the first quarter of this year leapt by 44 percent to 3.4 billion euros (3.71 billion U.S. dollars), compared with the same period of 2016, according to Volkswagen Group's quarterly report on Wednesday.

The company accredits the improvement to cost optimization, positive exchange rates, and refocusing the sales mix toward more profitable models.

Volkswagen has published its preliminary operating results before, indicating a good start in 2017. The interim report confirmed the positive outlook. Revenues increased to 56.2 billion euros, despite a 10-percent decrease in sales.

Following the diesel scandal in 2015, net liquidity in the automotive division fell by just 8.9 percent, to 23.6 billion euros.

"The fact that we always made safeguarding our robust financial strength a top priority is now paying off, particularly in light of the diesel issue," said Frank Witter, a member of the board of management.

Volkswagen expects a cash outflow in the double-digit billion euro range in 2017 to process the emissions scandal.

Skoda increased its operating profit by 31.8 percent, to 415 million euros, based on positive volumes and the mix effect.

Volkswagen commercial vehicles significantly increased global sales and revenues, operating at a profit improvement of 44.5 percent, to 205 million euros. Porsche Automobile generated sales revenues of 5 billion, with an operating profit of 932 million euros. The MAN and Scania commercial vehicle brands also increased profits by 28 million and 80 million euros respectively.

The operating profit of the Audi brand, including Lamborghini and Ducati, remained on a level with the previous year at 1.2 billion euros, compared to 1.3 billion previously. This was caused by higher amortization charges and depreciation brought about by its international model and portfolio expansion, according to Volkswagen.

The group confirmed its outlook for 2017, expecting an annual increase in sales revenues of up to four percent and an operating return on sales of between six and seven percent. (1 euro = 1.09 U.S. dollars) Endit