VW brushes aside €1bn legal hit with help from SUV sales and cost cutting
VW says it expects its return on sales for its passenger cars business to be at the lower end of its 6.5%-7.5% margin target for the year
Frankfurt — Sales of sports utility vehicles and cost cuts helped Volkswagen shrug off a €1bn legal charge and meet first-quarter operating profit forecasts on Thursday, sending its shares 3.3% higher. Earnings before interest and taxes (Ebit) fell to €3.9bn from €4.2bn a year earlier but were in line with the €3.92bn expected by analysts. Analysts praised Volkswagen's strong Ebit results at a time when other car makers and suppliers were cutting their outlook. "The comparison to other companies like Daimler which posted a 30% drop in adjusted operating profit, is impressive," Metzler analyst Juergen Pieper said. VW said it expects its return on sales for its passenger cars business to be at the lower end of its 6.5%-7.5% margin target for the year but analysts were impressed that VW reiterated the goal. VW's Bentley unit reversed losses, the car maker said. Volkswagen stuck to its forecast of higher unit sales, revenue growth of up to 5% in 2019, and for a group operating return on...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.