Published on May 4th, 2017 | by Daniel Sherman Fernandez0
Volkswagen Group Operating profit improves to EUR 4.4 billion
Group sales revenue increases by 10.3% in the first three months to EUR 56.2 billion. Net liquidity in the Automotive Division remains a robust EUR 23.6 billion at the end of March. CEO Matthias Müller: “The healthy quarterly figures strengthen our resolve to continue our chosen path.”
In the first three months of the current fiscal year, the Volkswagen Group started on a strong footing in a challenging market and competitive environment. Group sales revenue rose by 10.3% year-on-year to EUR 56.2 billion. At EUR 4.4 billion, operating profit in the first quarter also significantly exceeded expectations. This corresponds to an operating return on sales of 7.8% following 6.1% in the prior-year quarter (all comparative prior-year figures are before special items). The robust results were due to volume- and mix-related factors, positive exchange rate effects and product cost optimization, as well as particularly the improvement in the Volkswagen brand’s earnings, which rose to around EUR 0.9 billion. Other Group brands also contributed to the very good quarterly results.
“Our quarterly figures were positively impacted by the strong performance of the Group brands, the launch of new, compelling products and solid earnings in Western Europe,” said Matthias Müller, CEO of Volkswagen Aktiengesellschaft, commenting on the interim results. “Our efforts to improve efficiency and productivity across all areas of the Company are also paying off,” Müller continued. “We are encouraged by the strong results presented today. They strengthen our resolve to continue our chosen path with TOGETHER – Strategy 2025.”