Volkswagen shares slump despite earnings rise

28th April 2006, Comments 0 comments

28 April 2006, WOLFSBURG - Europe biggest carmaker Volkswagen AG said Friday that first-quarter net earnings jumped to 327 million euros (410 million dollars) following the launch of new models and as the company's savings programme takes effect. The first-quarter results compared to 70 million euros in 2005 with the company reaffirming its earnings projections for the full year 2006. But the latest results fell short of analysts' forecasts with shares in the German-based company falling 4.48 per cent to 6

28 April 2006

WOLFSBURG - Europe biggest carmaker Volkswagen AG said Friday that first-quarter net earnings jumped to 327 million euros (410 million dollars) following the launch of new models and as the company's savings programme takes effect.

The first-quarter results compared to 70 million euros in 2005 with the company reaffirming its earnings projections for the full year 2006.

But the latest results fell short of analysts' forecasts with shares in the German-based company falling 4.48 per cent to 61.80 euros in early European trading. First-quarter sales rose 21 per cent to 25.3 billion euros.

The release of the latest results comes ahead of the company's annual general meeting set down for Wednesday.

Ahead of that the company's board also has to decide on whether to extend the contract of the carmaker's chief Ferdinand Piech.

VW is planning to cut its workforce by 20,000 in a bid to shore up the company's cost base in the face of intense global competition.

DPA

Subject: German news, Volkswagen

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