German auto major Volkswagen Group (VKW.L,VLKAF.PK,VOW.BE) reported Thursday lower profit and sales revenues in its first quarter, amid weak unit sales and production.
Looking ahead for fiscal 2026, the company continues to expect sales revenue to develop within a range of 0 and up 3 percent compared with the previous year. The Group's operating return on sales is still expected to range between 4.0 percent and 5.5 percent.
In the first quarter, earnings after tax fell 28.4 percent to 1.56 billion euros from last year's 2.19 billion euros.
Pre-tax earnings also declined 28.4 percent year-over-year to 2.24 billion euros. Operating result fll 14.3 percent from last year to 2.46 billion euros, and operating margin dropped to 3.3 percent from 3.7 percent a year ago.
The decline in operating result was mainly due to special effects in the Brand Group Core, Brand Group Trucks, and higher US tariffs.
Sales revenue dropped 2.5 percent to 75.66 billion euros from prior year's 77.56 billion euros. The company noted that volume-driven revenue decline was partly offset by strong business in Europe and growth in the financial services business.
Deliveries to customers in the quarter dropped 4 percent year-over-year to 2.05 million units. Vehicle sales were down 7 percent from last year to 1.95 million units. The company noted that growth in South America, Western Europe and Central and Eastern Europe only partially offsets 20 percent decline in China and 9 percent drop in North America.
Production also declined 1.7 percent year-over-year to 2.16 million units.
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