Volkswagen revenue jumps on growth in Europe, North America

VOLKSWAGEN reported a rise in revenue of 22 per cent to 76 billion euros (S$111.9 billion) but saw a drop in operating profit to 5.7 billion euros after last year’s first quarter profit was boosted by commodity hedging.

The carmaker said the rise in revenue was attributed largely to strong growth in Europe and North America, and said its order book in Western Europe totalled 1.8 million vehicles, including 260,000 battery-electric cars.

Total deliveries in the first quarter were up 7.5 per cent from the previous year, in line with BMW, which also reported higher deliveries that month.

Still, Volkswagen’s deliveries in China were down 14.5 per cent throughout the quarter. “The company is confident that the deliveries in this region can recover throughout the year on the broadened model offering and China-specific technology,” the statement said.

The carmaker’s earnings before interest and taxes still beat the expectations of five analysts polled by Refinitiv SmartEstimate of 5.48 billion euros. It confirmed its outlook for 2023. REUTERS