|
Volkswagen boosts profit
|
 |
May 8, 2001: 3:01 a.m. ET
German automaker posts profit as foreign sales rise. domestic sales fall
|
LONDON (CNN) - Volkswagen, Europe's biggest automaker, said profit rose 57 percent as rising international sales offset a decline in its home market.
The German company said on Tuesday first-quarter net income rose to  389 million ($346 million) from 247 million, according to German accounting standards. Sales rose 10 percent to 23.03 billion.
Pretax profit rose 14.9 percent to 708, at the lower end of expectations. Analysts polled by Reuters expected an average pretax profit of 829 million, a net profit of 496 million and sales of 21.7 billion.
According to International Accounting Standards, VW had a net income of 830 million. As well as making cars under the VW brand, the automaker owns the Audi, Seat, Skoda and Rolls-Royce/Bentley marques.
"In the first quarter of 2001 worldwide economic growth slowed, primarily because of a market downturn in the USA," the company said. " As a consequence, economic growth in the Eurozone – and thus Germany – slowed. Automobile demand in Germany declined 6.6 percent."
"Bucking the trend Volkswagen Group sold substantially more units, particularly in France and Great Britain," VW said. In Western Europe, new car registrations fell by 4.3 percent in the first three months of 2001.
The Wolfsburg, Germany-based company said "further improvements in sales and pretax profit are expected" in 2001.
"In order to safeguard our projected earnings, we are carrying out comprehensive measures within all brands and regions in order to optimize cost and revenue structures," VW said. 
|
|
|
|
|
 |
|
