Volkswagen profit falls 22.4% in Q1
The Volkswagen automotive group presented profits of 3,266 million euros in the first quarter of 2024, 22.4% less than in the same period of the previous year, after a drop in vehicle sales, the German company announced today.
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Auto Volkswagen
The brand said revenue fell 1% year-on-year to €75.461bn, due to lower car sales across all its divisions except trucks.
VW said the lower sales volumes were the result of an unfavourable mix of countries, brands, models and higher fixed costs, which had a negative impact on its first-quarter results.
The company’s Core Brand Group division, which includes VW, Skoda and Seat, saw revenue decline by 1.2% to €32.773bn in the first three months of 2024.
Revenue at its premium division – Audi, Lamborghini, Bentley and Ducati – fell by 18.7% to €13.725bn, while turnover at sports car maker Porsche dropped by 12.7% to €8.144bn.
However, its truck division, which includes MAN, Volkswagen Truck & Bus, Scania and Navistar, generated revenue of €11.477bn, up almost 5% year-on-year, while software unit Cariad saw its turnover increase by 6.5% to €179m.
The German carmaker sold 2.081m vehicles up to March, down 2% on the previous year, although deliveries to customers increased by 3.1% to 2.104m units.
The company’s operating profit fell by 20.2% to €4.588bn.
The company maintained its outlook for 2024, when it expects revenue to increase by 5%, while its operating return on sales is forecast to be between 7% and 7.5%.
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