Volkswagen profit jumped in the first quarter, 44%

Moscow. May 3. INTERFAX.RU German carmaker Volkswagen has recorded an increase in net profit in the first quarter of 2017, 44% due to the strong indicators of the Volkswagen brand itself. As stated in the press release, the company net profit last quarter rose to 3.4 billion Euro, compared to 2.37 billion Euro in the same period last year.

Experts polled by FactSet, on average predicted this indicator at level of 2.44 billion euros. Volkswagen’s revenue in January-March increased by 10.3%, to 56.2 billion euros. The operating margin increased to 7.8% from 6.1%.

As previously reported, the company’s operating profit in the first quarter rose 27%, to 4.4 billion euros. The Volkswagen brand has received an operating profit of 869 million euros compared to a total of 73 million euros a year earlier, despite sales decline 1.3%, to 1.44 million vehicles.

The carmaker increased sales of cars in January-March by 1.3% to 2.61 million vehicles. In Germany sales rose by 0.3% to 323 thousand in foreign markets by 1.4%, to 2,288 thousand Volkswagen confirmed the forecast for the current year, whereby the operating margin of the automaker will be 6-7% by the end of 2017. Volkswagen shares on Wednesday fell by 1.2%.