As expected, Volkswagen AG reported markedly reduced first-quarter earnings today but remains optimistic about the remainder of the year, Dow-Jones Newswire reported.
VW’s Q1 2002 net profit was down 25 percent to 627 million euros ($US566.2 million) from 830 million euros in Q1 2001, the report said.
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Dow-Jones said that pretax profit fell 20 percent from 1.25 billion euros in Q1 2001 to 997 million euros in the first three months of 2002.
Allowing for devaluation and restructuring costs for the Argentine economic crisis, Volkswagen reported Q1 2002 pretax profit of 1.05 billion euros, Dow-Jones said.
The report said VW sales fell 5.4 percent from 22.48 billion euros in Q1 2001 to 21.27 billion euros in Q2, 2002.
Dow-Jones said Volkswagen still expects its full-year pretax profit to reach the 2001 level of 4.41 billion euros which was up from 3.72 billion euros a year earlier.
The car maker added it doesn’t see an economic upswing in the US or western Europe before the second half of the year, the Dow-Jones report said.
