Volkswagen reports soaring quarterly sales, earnings

21st April 2010, Comments 0 comments

Europe's top automaker Volkswagen reported runaway first-quarter results on Wednesday, with operating profit almost tripling and sales soaring by almost a fifth, helped by strong growth in China.

"We started 2010 with a large number of attractive new vehicles and pressed ahead with our model offensive," chief executive Martin Winterkorn said in a statement.

"The good start to the current year shows that we are on the right path and that we were able to benefit disproportionately from the growth in the global auto market in the first quarter," he said.

Volkswagen said that operating profit was 848 million euros (1.1 billion dollars), up from 312 million euros in the year-earlier period, on sales of 28.6 billion euros, up 19.4 percent.

Pre-tax income soared to 703 million euros from 52 million euros. Net profit rose to 473 million euros from 243 million euros.

The Wolfsburg-based company said it still expected to report higher deliveries to customers over the whole of 2010, as well as increased sales and operating profit.

Interest rate and exchange rate volatility will remain a drag on profit, however, it warned.

© 2010 AFP

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