The first-quarter operating profit of Volkswagen nearly tripled

Article by Christian A., on August 25, 2010

The first-quarter operating profit of Volkswagen nearly tripled after all of its core brands posted improvements. In particular, its flagship VW brand recorded a striking turnaround. VW's group results were reported last Wednesday, indicating the growth of its "war chest" by more than 14 billion euros ($18.7 billion) due to a rights issue.

In a statement, finance chief Hans Dieter Poetsch said that the company is optimistic about its future business development. He also said that VW‚ top priority remains to be "safeguarding and expanding [its] financial strength."

These financial results indicate the strength of VW's underlying earnings quality. Frequently, these results can be inflated by lower warranty costs or the releases of built-up provisions, which the market tends to value at a discount. The report also showed the improvement at every group marquee.

However, the financial figures for its supercar brands (Bugatti and Lamborghini) are not stated since VW does not report their figures separately. The VW brand posted a quarterly operating profit of 416 million euros, which translates to a margin of 2.2% -- significantly better than the forecasts.

The brand's earnings nearly doubled, when compared with the quarter that ends in December. For the entirety of last year, VW revealed a profit of 561 million euros on revenue of 65.4 billion.

If you liked the article, share on:

Comments

Recommended

Here comes Blue Arrow, a Porsche 911 (991) Turbo S tuned by Edo Competition that is even quicker and faster than the 911 GT2 RS. Moreover, it is definitely the...
by - July 24, 2017
Earlier this year, Ford had already begun deliveries of the Ford GT. However, the company has been experiencing some delays at their facility in Canada. This means that the next...
by - July 24, 2017
BMW has given the 2018 1-Series a facelift, and they have just released a ton of new photos and a couple of videos to show us what it’s got. Nevertheless,...
by - July 24, 2017
When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 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