FRANKFURT: German auto giant Volkswagen reported Tuesday that profits fell sharply at the start of the year as vehicle sales slipped but confirmed its outlook for 2024.
Net profit stood at 3.7 billion euros ($4.0 billion) from January to March, down more than 20 percent from a year earlier.
However the figure was higher than 3.3 billion euros expected by analysts surveyed by financial data firm FactSet.
Sales were 75.5 billion euros, down slightly from a year earlier, although better than expected.
“Our first quarter results show a slow start to the year,” said Arno Antlitz, chief financial officer of Volkswagen, whose 10 brands range from Porsche to Seat and Skoda.
Volkswagen reports strong profit rise for 2023
“We remain confident of achieving our financial targets for 2024,” he said, citing “solid” orders.
The launch of more than 30 new models as well as previously announced savings programmes will boost VW as the year progresses, he said.
Volkswagen sold 2.1 million vehicles in the first quarter, down two percent from a year earlier. Sales rose in Asia-Pacific and South America but slipped in Europe and North America.
An increase in fixed costs also weighed on the carmaker.
But it said orders remained “stable at a high level” and confirmed its outlook for 2024, with sales revenue expected to grow by up to five percent.
Volkswagen is facing a host of challenges, ranging from fierce competition, including from new rivals in key market China, to a costly shift to electric vehicles that is moving slowly.
Last year, it announced plans for a 10-billion-euro savings programme to boost profitability and has flagged plans to cut its workforce over the coming years.
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