Volkswagen AG enjoyed a strong first quarter reporting a 26.8% increase in net income as well as a 21.8% rise in operating profit on just a 2.7% jump in revenue. Most of the company’s brands saw an increase in operating profit, except its namesake brand, Volkswagen.
VW’s operating profit was about $610 million for the quarter compared with about $815.2 million a year ago. The company said, “it was negatively impacted by lower sales volumes, negative exchange rate trends especially in South America and Russia and higher upfront investments in new technologies, while lower material costs and improvements in the mix had a positive effect.”
Porsche recorded an operating profit of $957.6 million in the first three months compared with $791.7 million for the same period last year. (more…)