Volkswagen Group Sees 22 Percent Profit Increase In First quarter
|   Sunday, May 11, 2014
Excellent sales of luxury brands Audi and Porsche in the first quarter propelled Volkswagen's gross profit to new record levels. It has reached the 2.86 billion euro threshold, an increase of 22 percent between January to March.

In the same period of last year, the same balance sheet stood at 2.34 billion euros. The data refers to the gross profit of the German group, calculated before interest and taxes (EBIT). Volkswagen revenues have also climbed by 2.
percent in the first quarter to 48.7 billion euros, and the group's stock increased by 0.8 percent in recent days on the Frankfurt Stock Exchange.

Except for those at SEAT, all brands in the Volkswagen Group portfolio have made ​​a profit in the first quarter of this year. The Iberians from SEAT had a loss of 36 million euros in the first quarter of 2014, an improvement from the 46 million loss in the same period of last year. Profit increases came from both Skoda and Porsche, while Audi had a profit identical to that obtained in the first quarter of 2013, but the company from Ingolstadt has motivated this result by investing heavily in technology, and new models which will be seen in the coming months.

The Volkswagen brand scored a profit too in the first quarter, but it was down from the 2013 result. The Volkswagen brand had an operating profit of 440 million euros, a decrease compared to the 590 million euros achieved in the first quarter of 2013.

The profit earned was lower than that of the last year because there were made ​​smaller sales volumes, coupled with negative trends of the exchange rates, especially in South America and Russia, together with higher initial investment in new technologies.

Porsche had a profit which rose to 698 million euros from 573 million euros. The operating profit of Bentley likewise increased to 45 million from 27 million.
New models and the growth in car sales have helped Skoda to increase its profit by 65 percent to 185 million euros.

"The Volkswagen Group has established a strong position in recent years," and "our good start to the current fiscal year is an additional proof of this. We must now continue improving our position and maintain our successful course." CEO Martin Winterkorn said in a statement concerning these results.

The German company results have exceeded analyst estimates of the automobile market. Volkswagen forecasted in March record sales of 10 million vehicles this year, the target which would be attained four years before the term established in the group's strategy. This figure includes deliveries from truck manufacturers MAN and Scania controlled by Volkswagen.

"There's an 80-percent chance that VW will raise its guidance in the next 3-4 months," said analyst Juergen Pieper from Frankfurt-based Metzler Bank, ciiting the European recovery and growing savings from modular production.

The company plans to launch 100 models by the end of 2015, either new models or improved versions of existing ones, in a bid for the highest position in the global car manufacturer rankings, by 2018, a position occupied in the last two years by the Japanese group Toyota.
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