As expected, VW posted a net loss of €1.6 billion due to a special charge of €6.7 billion. On an operating basis, the company showed strength with operating profits before charges of €3.2 billion, the same as the similar period last year. Vehicle sales were down 3.4% to €2.35 million.
As expected, management apologized profusely:
“The figures show the core strength of the Volkswagen Group on the one hand, while on the other the initial impact of the current situation is becoming clear. We will do everything in our power to win back the trust we have lost”, said Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg on Wednesday
VW’s luxury brand, which competes with Mercedes and BMW, was critical to the parent’s success:
The Volkswagen brand’s operating profit before special items relating to the diesel issue rose to EUR 2.2 billion (EUR 1.7 billion). Positive effects from exchange rates, optimized sales revenue and costs, and the efficiency program more than offset the negative effects of the markets in South America and Russia.
Audi lifted operating profit to EUR 4.0 billion (EUR 3.8 billion) due to sales growth, positive changes in the mix and favorable exchange rate movements. Earnings were negatively impacted by high upfront investments in new products and technologies, as well as the expansion of the international production network.
The results had a silver lining, the last time that is likely to happen in several quarters going forward.
Top Gaining Stocks
Top Losing Stocks