Mexican Media Brands
Accounting Changes Cut VW Group Profits
Volkswagen AG’s unit sales and revenue gained in the first quarter, but an accounting change turned a slight gain in earnings into a 2% decline.
#economics
Share
Volkswagen AG’s unit sales and revenue gained in the first quarter, but an accounting change turned a slight gain in earnings into a 2% decline.
The group’s retail deliveries grew 7% to 2.68 million vehicles, including an any-month record 1 million units in March. Revenue climbed 4% to €58.2 billion ($70.6 billion). But pretax earnings slipped 3% to €4.5 billion ($5.4 billion) because of a change in the way the company values derivatives.
VW notes that it did not need to make further provisions in the quarter to settle costs associated with its 3-year-old diesel emission cheating scandal. The company also says cash payments for fines and restitution regarding the issue dropped “significantly” in January-March.
All of VW Group’s major brands reported revenue and operating profit gains in January-March. Net liquidity for the Automotive Div. expanded 3% to €24.3 billion ($29.4 billion).
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .