VW Earnings Tumble 38%

Volkswagen AG posted net income of €1.9 billion ($2.5 billion) in the first quarter compared with €3.1 billion ($4.1 billion) in the same period of 2012.

Revenue dipped 2% to €46.6 billion ($60.8 billion). The company notes that sales growth in China and the U.S. wasn't enough to offset shrinking demand in Europe.

Operating earnings dropped 26% to €2.3 billion ($3.1 billion). But VW stands by its full-year forecast of an €11.5 billion ($15 billion) operating profit, matching last year's level.

The company will release detailed first-quarter results on April 29.