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Elham AbolFateh

Automobile

Volkswagen softens outlook as first-quarter profit falls، legal woes weigh

Thursday 02/May/2019 - 09:25 AM
Volkswagen
Volkswagen
Reuters
Volkswagen set aside 1 billion euros ($1.12 billion) for legal issues as it posted a drop in first-quarter operating profit and warned that the profit margin for its passenger cars business will be at the lower end of expectations، Reuters reported.

Volkswagen said on Thursday it expects the return on sales for its passenger cars business to be at the lower end of its 6.5 percent and 7.5 percent target for the year.



The company said it had set aside 1 billion euros for additional legal risks stemming from its diesel emissions cheating scandal.

Earnings before interest and taxes fell to 3.9 billion euros in the first quarter، in line with 3.92 billion euros expected by analysts، but below the 4.2 billion euros in the year-earlier period.




Passenger car sales fell during the quarter but improvements in pricing and model mix partially compensated for lower volumes، the carmaker said.

Volkswagen stuck to its forecast of higher unit sales، revenue growth of up to 5 percent this year، and for a group operating return on sales of 6.5-7.5 percent.

Volkswagen shares were indicated to open 1.5 percent higher.

Edited by Hassanain Tayea.

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