VWG off to ‘strong’ start
Volkswagen Group (VWG) has started fiscal year 2017 on a ‘strong footing’ with group sales revenue up by 10.3% in the first three months to €56.2bn.
VWG posted increased operating profits of €4.4bn which ‘significantly exceeded expectations’. It claimed the results were due to volume- and mix-related factors, positive exchange rate effects and product cost optimisation, as well as particularly the improvement in the Volkswagen brand’s earnings, which rose to around €0.9bn. Other Group brands also contributed to the very good quarterly results.
‘Our quarterly figures were positively impacted by the strong performance of the Group brands, the launch of new, compelling products and solid earnings in Western Europe, said Matthias Müller, CEO of Volkswagen Aktiengesellschaft. ‘Our efforts to improve efficiency and productivity across all areas of the company are also paying off.
‘We are encouraged by the strong results presented today. They strengthen our resolve to continue our chosen path with TOGETHER – Strategy 2025.’
At -€2.6bn, net cash flow in the Automotive Division was down €3.9bn on the prior-year figure in the first three months of 2017 due to cash outflows relating to the diesel issue. Net liquidity in the Automotive Division remained a robust €23.6bn at the end of March 2017.