VW Group 1Q Revenue Up, Earnings Down

Volkswagen AG reports its revenue rose 3% to €60 billion ($67.3 billion) in the first quarter of 2019, even though vehicle deliveries to customers slipped 3% to 2.61 million units.

The group’s operating result before special items jumped 15% to €4.8 billion ($5.4 billion). But a nearly €1 billion set aside to cover legal issues, related mainly to VW’s 4-year-old diesel emission cheating scandal, produced an 8% to €3.9 billion decline in operating result.

VW’s net earnings in January-March slid 8% to €3.1 billion. The company reported its net cash flow shrank 18% to €2 billion.

The company’s sales of passenger cars slid 3% to 2.55 million units. Commercial vehicles sales rose 7% to 57,200 trucks and buses.

VW anticipates a slowing global economy this year as geopolitical tensions and “protectionist tendencies” curb growth in both emerging and mature economies.

The result will be flat worldwide car sales this year, marked by slight declines in Germany and North America, slight gains South America and central and eastern Europe, and flat sales in western Europe and Asia Pacific.