Directory
Print
Email
ReprintsVW's own brand boosts Q1 margin
April 30, 2008 - 5:30 am ET
FRANKFURT (Reuters) -- Volkswagen, the world's fourth-largest carmaker, reported today that operating profit at its core VW brand rose 19 percent in the first quarter to 461 million euros ($718.1 million). Revenues were flat at 18.09 billion euros, translating to a near 2.55 percent margin versus last year's 2.14 percent. The group's financial services division reported operating profit rose 7 percent to 276 million euros, only slightly lagging an 8.8 percent rise in revenue despite tightening credit conditions and higher refinancing costs in the market. Among Volkswagen's other main brands, Czech unit Skoda continued to show strong support, increasing operating profit by 5.8 percent to 182 million euros although profitability slid some 20 basis points to 8.3 percent. Its struggling SEAT nameplate swung to a 12 million euro profit from an 11 million euro loss, while VW Commercial Vehicles posted a 56 percent operating profit gain in the quarter to 103 million euros. The group published preliminary first-quarter results last Wednesday which met expectations rather than beating them as it had over a string of recent quarters. Volkswagen expects higher vehicle sales, revenue and operating profit in 2008 as well as a positive net cash flow and a further improvement in its automotive division's liquidity. "The above forecasts do not take into account the effects of the acquisition of further shares of Scania on volume, earnings and financing data," VW said in its quarterly report. |
RSS Feed
|
