Volkswagen AG revealed a net income increase for the first quarter to 1.71 billion euros ($2.51 billion) from 473 million euros last year. Its profit exceeded the 1.63 billion-euro average estimate of seven analysts that Bloomberg has compiled earlier. The company’s revenue increased 31 percent to 37.5 billion euros.
Martin Winterkorn, the company’s CEO, repeated that the rising demand in China will help increase the company’s revenue and profit for this year.
The company has also stated that deliveries for this year will increase 5 percent from 7.2 million vehicles in 2010. In China alone, the VW brand’s deliveries increased 20 percent during the first quarter of this year.
Worldwide, the company reported sales of 1.97 million units during the quarter, with the demand for VW's Tiguan compact SUV as well as for Audi's new A7 Sportback and revamped A8 sedan identified as contributing factors.
The company is relying on the market growth in China, Brazil, India and Russia when it comes to achieving its goal of outperforming Toyota Motor Corp. as the largest automaker in the world. The company’s automotive division net liquidity remains high at 19.6 billion euros after increasing 1 billion euros during the first quarter of this year.
Despite the fact that VW paid out 3.5 billion euros to acquire Europe's biggest car retailer, Porsche Holding Salzburg, liquidity still increased. The company also obtained an 8.18 percent stake in Germany-based SGL Carbon, which made VW become the second largest shareholder of SGL next to BMW AG.