 (OTCMKTS:VLKAY) reported a rise in first quarter earnings, as it benefited from various cost-saving initiatives.){kind=link}
Volkswagen Group (VW) (OTCMKTS:VLKAY) reported a rise in first quarter earnings, with pre-tax profits almost doubling as it benefited from cost-saving initiatives.
First-quarter operating profit at VW’s largest division surged to 869 million euros ($948.9 million) from 73 million a year earlier, in spite of a dip in sales levels. Overall, group profit before tax rose 44.3 percent to 4.6 billion euros (£3.9 billion).
Matthias Müller, chief executive, said: “Our efforts to improve efficiency and productivity are paying off. We are encouraged by today’s strong results. They strengthen our resolve to continue our chosen path with Together – Strategy 2025.”
VW have faced a difficult few years following a backlash over a controversy relating to emissions back in 2015.
VW’s has been since struggling to revive its brand image, after it emerged that in the U.S VW’s diesel cars were fitted with software that recognized when cars were being monitored for emissions tests.
It has since been estimated that around 11 million cars are currently fitted with the software globally.
The company has consequently been faced with a barrage of legal costs relating to the issue, which has led to extensive restructuring efforts.
Back in November last year the German car manufacturer announced Volkswagen announced plans to cut around 30,000 jobs, in an attempt to reduce costs and boost profit margins.
Looking ahead, Mr Müller said that the company expects full-year revenue to rise by 4 percent, with an operating profit margin of between 6 and 7 percent.
Nevertheless, he remained cautious that these may be affected by economic uncertainty and exchange rates moves, as well as residual fallout from the ongoing emissions scandal.
Shares in VW remain steady, currently down 0.28 percent as of 13.30PM (GMT).