Volkswagen profits almost doubled in the first quarter

Article by Christian A., on August 25, 2010

To say that Volkswagen AG is thriving is an understatement. For the first quarter, its profit nearly doubled as sales in China and of its Audi luxury brand hit record levels. The net income of Europe's largest automaker rose to 473 million euros ($633 million) from 243 million euros a year earlier. In a statement, VW compared this with the 459 million-euro average estimate of four analysts as compiled by Bloomberg.

Sales went up by 19% to 28.6 billion euros. In what is regarded to be a sign that European carmakers are on its way to an economic recovery, VW is predicting that this year, it will have considerable sales growth.

VW has a target of surpassing Toyota Motor Corp. in deliveries and profitability by 2018. Earlier this week, Daimler AG raised forecasts for its car and truck units. PSA/Peugeot-Citroen's first quarter revenue rose by 28%, easily beating estimates.

Christian Aust, a Munich-based analyst with UniCredit, before the earnings release, had indicated that growth in the US and China markets would contribute to VW'd sales increase this year.

He also said that when it comes to profit, VW find it difficult "for it to compensate for a weak second-half in Europe." VW's European deliveries last year were boosted by government scrappage schemes that prompted the trade-in of older cars for fuel-efficient ones.

As a result, VW posted that it had sold a record 6.29 million cars and sport-utility vehicles. In Frankfurt, VW rose as much as 1.65 euros, or 2.2%, to 75.25 euros and traded at 74.97 euros as of 13:35 CET, valuing the carmaker at 34.4 billion euros.

Topics: vw, profit

If you liked the article, share on:

Comments

Recommended

Hyundai is introducing a new 2018 Accent that is not only wider and longer, but is now also sporting a new look that is more serious than the previous model....
by - February 20, 2017
Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries