VW Reports Big Revenue, Profit Gains

Volkswagen AG’s revenue grew 10% to €56.2 billion ($61.4 billion) in the first quarter of 2017, even though retail sales dipped by 13,000 units to 2.33 million vehicles.

The company’s operating profit for the period jumped 40% to €4.4 billion ($4.8 billion). Net profit surged 44% to €3.4 billion ($3.7 billion). VW says gains were the result of favorable exchange rates, a richer sales mix and production cost-cutting measures.

First-quarter operating profit for VW brand cars jumped to €869 million ($949 million) from €70 million in 2016, signaling the marque is recovering from its two-year-old diesel emission cheating scandal.

The group’s passenger car sales slipped 1% to 2.33 million units in January-March. Sales of commercial trucks by Scania, MAN and VW Commercial Vehicles grew 8% to 167,700 units.

Operating results also improved for Porsche (+9% to €932 million), Skoda (+32% to €415 million) and SEAT (+4% to €56 million). But quarterly operating profits shrank 4% to €1.2 billion for Audi. Losses by Bentley narrowed to €30 million from €54 million.

Retail customer sales, including transactions by Chinese ventures, fell in January-March for the VW brand (-1% to 1.44 million units) and Audi (-7% to 422,600). Sales increased for Skoda (+3% to 283,500 vehicles), SEAT (+14% to 117,300) and Porsche (+7% to 59,700).