Volkswagen Group Profit Slides on Lower Sales Volume Higher Costs

By David Sachs

Volkswagen Group posted lower sales revenue and profit margins in the first quarter on fewer vehicle sales and higher costs, but backed its full-year outlook.

The German carmaker said revenue finished the period at 75.46 billion euros ($80.90 billion) compared with EUR76.2 billion in the first quarter of last year, as vehicle sales slipped 2%. Analysts had expected revenue at EUR75.66 billion, according to the Visible Alpha consensus.

The group's operating result slid 20% to EUR4.59 billion, making for an operating return on sales margin of 6.1%, Volkswagen said. The company posted a margin of 7.5% in the first quarter of last year. After-tax earnings fell about 22% to EUR3.71 billion.

Volkswagen blamed the results on lower sales volumes, higher fixed costs, and an unfavorable regional and model mix.

"As expected, our first-quarter results show a slow start to the year," chief Financial Officer Arno Antlitz said.

Volkswagen Group reported a net cash outflow EUR3.03 billion compared with a positive balance of EUR2.24 billion a year prior.

The company backed its full-year outlook.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

April 30, 2024 01:56 ET (05:56 GMT)

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