VW’s First-Quarter Profit Climbs 22%

Volkswagen AG reports its operating profit for January-March rose to nearly €2.9 billion from €2.3 billion in the first quarter of 2013.

Sales revenue for the period advanced nearly 3% to €47.8 billion. Vehicle deliveries grew nearly 6% to 2.44 million units, led by increases in China and Europe. Profit after taxes jumped 27% to €2.5 billion.

The VW passenger car brand, excluding results from its ventures in China, posted an operating profit of €440 million, down 25% from the first quarter last year. The company blames lower sales volumes, investments in new technology and unfavorable exchange rates in Russia and South America.

Audi's operating profit in the first quarter was flat at €1.3 billion. Porsche climbed 22% to €698 million, and Skoda's profit surged 65% to €185 million. SEAT narrowed its loss to €36 million from €46 million last year. The group's commercial vehicle operation more than doubled its operating profit to €136 million.

VW predicts continued uneven market demand for new cars this year, with overall global growth slowing from last year's pace. The company anticipates a slight decrease in sales of the trucks and buses it offers.

VW expects its group sales in 2014 will be within 3% up or down from 2013, depending upon economic conditions.