Volkswagen Q1 profit drops 3.6% on accounting changes

BERLIN - 26 April 2018: Volkswagen (VOWG_p.DE) on Thursday posted a surprise drop in first-quarter operating profit as accounting changes, currency headwinds and technology costs weighed on group results.

Group earnings before interest and taxes declined 3.6 percent to 4.21 billion euros ($5.13 billion), VW said, below the 4.47 billion-euro consensus forecast in a Reuters poll of banks and brokerages.

The new Volkswagen CC is displayed during a media preview of the Auto China 2018 motor show in Beijing, China April 25, 2018. REUTERS/Damir Sagolj
Without the accounting changes, operating profit came in slightly above last year’s level of 4.37 billion euros, VW said.

The carmaker stuck to its 2018 guidance published in February, predicting a return on sales of between 6.5 and 7.5 percent before special items, compared with 7.4 percent last year.

Revenue is expected to exceed the 2017 record of 231 billion euros by as much as 5 percent while group deliveries may moderately exceed last year’s 10.7 million vehicles, VW said.

($1 = 0.8207 euros)