The Volkswagen Group proudly said that they have delivered more vehicles, generated higher sales revenue and increased earnings substantially in the first quarter of 2007.
The Volkswagen Passenger Cars brand also increased its operating profit by â‚¬435 million to â‚¬386 million in the first quarter, which attributes primarily to the successful restructuring measures implemented last year.
â€œWe made a good start to 2007 and further improved our financial positionâ€, said Hans Dieter PÃ¶tsch, Volkswagen AGâ€™s CFO, commenting on the publication of the quarterly figures. â€œOur new product initiative was successful. All Group brands increased their sales in the first quarter.â€ The Volkswagen Group delivered 1.5 million vehicles worldwide, an increase of 7.9 percent. Sales revenue grew by 5.1 % to â‚¬26.6 billion. â€œAll brands contributed to this success.â€ At â‚¬1.1 billion, the Volkswagen Group’s operating profit was up significantly year-on-year. Profit after tax more than doubled to â‚¬740 million.
PÃ¶tsch said that all Group brands improved their operating profit. Like Audiâ€™s operating profit increased by â‚¬56 million year-on-year. While, Lamborghini recorded positive earnings growth. The Å koda brand was again successful with a rising profit from â‚¬29 million to â‚¬172 million. SEAT posted an operating loss of â‚¬11 million, a substantial reduction in the previous yearâ€™s first-quarter loss.The Bentley brand increased its operating profit by â‚¬33 million to â‚¬38 million due to volume growth.
CFO PÃ¶tsch reiterated expectations for the current year, saying that the Volkswagen Group will continue the new model rollout, increase productivity and improve current processes. They also expect to slightly increase worldwide deliveries in 2007 and exceed 2006 sales revenue. For 2008, the Board of Management is confident in achieving a consolidated profit before tax of at least â‚¬5.1 billion.