VW Group posts 22% hike in first-quarter operating profit of 2014

Article by Christian A., on April 30, 2014

Volkswagen Group logged a 22-percent jump in operating profit to EUR2.86 billion ($3.97 billion) in the first quarter of 2014, as profits from its Porsche and Audi brands helped counter slumping earnings at its core VW brand. VW said in a statement that it also posted an almost 3-percent leap in first-quarter revenues to EUR47.8 billion ($66.25 billion).

Volkswagen chief executive Martin Winterkorn said in the statement that the group has established a strong position in recent years, its good start to 1014 is an additional proof of that position. He remarked that the group must continue improving it position and maintain its course.

Recovering demand in Europe buoyed Audi and Porsche to surge by 12 percent and 5 percent to 413,000 and 38,700 units, respectively. For the quarter, all of VW’s car brands logged profits, save for Seat. VW brand posted a decline in first-quarter operating profit to EUR440 million ($609.9 million) from EUR590 million in the same period in 2013.

Its profits took a hit from lower sales volumes, unfavorable exchange rates in South America and Russia, and higher upfront investments in new technologies.

Audi, meanwhile, posted a 2014 first-quarter operating profit similar to the period in 2013, at EUR1.3 billion ($1.8 billion), as higher sales was offset by high upfront investments in new products and technologies and in the expansion of Audi's production network outside Germany.

Porsche, on the other hand, saw its operating profit in the quarter surge from EUR573 million to 698 million ($967.4 million) while Bentley also managed to hike its operating profit to EUR45 million ($62.4 million) from 27 million. Seat posted another loss in the quarter at EUR36 million ($49.9 million), it was lower than the EUR46 million posted a year ago.

Skoda logged a 65-percent boost in profit in the quarter to EUR185 million ($256.4 million), thanks to new models and higher vehicle sales. VW reiterated its cautious outlook disclosed in February, although its core European markets have surged for seven consecutive months. [source: Volkswagen]

Topics: vw, profit

If you liked the article, share on:

Comments

Recommended

While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 2017
It seems that BMW’s high-performance division -- BMW M – still has not warmed up to front-wheel drive vehicles. So those who had been looking forward to BMW M vehicles...
by - October 22, 2017
Porsche already has the Performance Package for their range-topping Macan Turbo, which is currently available in some countries. Soon, this model will be dethroned by something even fancier by the...
by - October 22, 2017
After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 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