Operating profit at Volkswagen climbed from EUR0.8bn to to EUR2.9bn and operating return on sales rose from 3% to 7.8% year-on-year in the first quarter of 2011.
Profit before tax was to EUR2.2bn from EUR0.7bn). The result after tax for the first quarter of the year increased to EUR1.7bn from EUR0.5bn. Analysts polled by Dow Jones Newswires had forecast a net profit of EUR1.84bn.
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Sales climbed 30.8% to EUR37.5bn and unit sales at 1.99m were up 14%. Global passenger car market share rose to 12% from 11.5%.
Sustained high demand in China, India, Central and Eastern Europe, and North and South America, was the main earnings driver, the automaker said. In addition to the higher volumes, lower product costs contributed to ongoing profitable growth.
Global sales by the Volkswagen Passenger Cars brand in January to March rose to 1.1m vehicles from 0.9m.
Operating profit more than doubled in comparison to the first quarter of 2010, rising from EUR416m to EUR1.1bn.
Worldwide Audi sales increased 18.1% in the first quarter to 374,000 vehicles (316,000 vehicles). Operating profit grew from EUR478m to EUR1.1bn.
Škoda brand sales increased to 181,000 from 142,000. First-quarter operating profit rose to EUR187m from EUR100m.
SEAT sold 93,000 vehicles worldwide, up from 91,000. The loss generated by the brand was reduced to EUR12m after EUR110m in Q1 2010. Higher volumes, reduced sales support measures and optimised marketing costs contributed to this.
Bentley’s operating loss narrowed by EUR11m to EUR25m, negatively impacted by expenditures for new products and exchange rate effects.
Volkswagen Commercial Vehicles sold 108,000 light commercial vehicles, up 47.4%. Operating profit of EUR92m thanks to the higher volume reversed a loss of EUR16m a year ago.
Scania’s EUR376m operating profit was EUR162m higher thanks to increased demand for heavy trucks and buses.
Overall, VW expects global demand for passenger cars to exceed the level for 2010. In some Western European countries, rising public debt and the end of subsidy programs will have a negative impact on demand for new vehicles but an increase in new vehicle registrations can be expected in Central and Eastern Europe. The group expects the positive trend in the strategically important China and India to continue, and that demand will also rise further in North and South America.
The group confirmed that it still expects sales and operating profit to surpass the 2010 figures of EUR126.9bn and EUR7.1bn, respectively.
