This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Volkswagen, Europe’s largest car maker, continues to suffer the fallout from the engine emissions scandal, with first-quarter net profit falling to €2.37 billion, from €2.93 billion a year earlier.
The German car maker’s core VW brand was worst hit, reporting earnings before interest, taxes and special items of €73 million, down from €514 million a year earlier.
It wasn’t all bad news, and VW is benefitting from its diversified structure with ten automotive brands. Premium brands Porsche and Audi performed well, while mid-range Czech brand Skoda reported that operating profit rose by more than 30%.
Still, the group’s consolidated sales were €50.96 billion, down 3.4% from €52.74 billion a year earlier and missing analysts’ forecasts of €51.74 billion. Vehicle sales declined 1.2% to 2.61 million.