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Volkswagen Q1 Profit Surges On Strong Volume Growth; Lifts FY21 Margin View - Quick Facts

German automaker Volkswagen AG (VKW.L,VLKAF.PK,VOW.BE) reported Thursday that its first-quarter profit after tax grew significantly to 3.4 billion euros from last year's 0.5 billion euros.

Operating profit surged to 4.8 billion euros from prior year's 0.9 billion euros, despite Covid-19 and slight impact from semi-conductor shortages. Operating return on sales reached 7.7 percent, up from 1.6 percent a year ago.

Sales revenue climbed to 62.4 billion euros from 55.1 billion euros last year, thanks to increased unit sales and improved product mix.

Deliveries went up 21.2 percent on previous year to 2.4 million vehicles. Sales of electrified vehicles more than doubled to 133,300 units.

Further, Volkswagen raised the outlook for its operating margin for full year 2021 to 5.5 to 7.0 percent. It was previously 5.0 to 6.5 percent.

Assuming successful containment of the Covid-19 pandemic, the company expects deliveries to customers in 2021 will be significantly up on the previous year amid continued challenging market conditions.

Sales revenues are expected to be significantly higher than the prior-year figure.

CEO Herbert Diess said, "We started the year with great momentum and are on a strong operational course, as the good quarterly figures show. Our e-offensive continues to gain momentum and we are making good progress with the transformation. There is still much more we can achieve in the remainder of the year."

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