VW softens outlook for passenger cars business upon Q1 profit knock
German car giant posts a five-percent drop in first-quarter operating profit
Volkswagen set aside €1bn (roughly R16,163,000,000) for legal issues as it posted a five percent drop in first-quarter operating profit and warned that the profit margin for its passenger cars business will be at the lower end of expectations.
Volkswagen said it expects the return on sales for its passenger cars business to be at the lower end of its 6.5 percent to 7.5 percent target for the year.
Earnings before interest and taxes fell to €3.9bn (roughly R63,018,867,327) in the first quarter, in line with €3.92bn expected by analysts.
Volkswagen stuck to its forecast of higher unit sales, revenue growth of up to five percent this year, and for a group operating return on sales of 6.5 to 7.5 percent.