It was his first big appearance as Volkswagen boss, and Herbert Diess could present equally good numbers: VW makes a billion plus despite diesel crisis. Although the profit declined, sales increased sharply.
New Volkswagen boss Herbert Diess
Thursday, 26.04.2018
11:25 clock
Volkswagen Revenues fell slightly at the beginning of the year. Operating income shrank by almost four percent to 4.2 billion euros, However, this is not due to the diesel scandal, but because a new accounting reduced the balance sheet. Certain business units were no longer added to earnings for the first time.
Without this effect, the adjusted result would have been slightly above the previous year. Turnover increased by 3.6 percent to a good 58 billion euros due to record deliveries in the first quarter.
The prospects for the current year have not changed, said the new CEO Herbert Diess, According to this, sales are expected to rise by up to five percent and the operating return to between 6.5 and 7.5 percent.
The quarterly figures were also well received on the stock market. The VW share increased at times by more than four percent.
This was surprising in mid-April Matthias Müller replaced at the top of the world’s largest carmaker. It is expanding its management into six business areas, with brands being bundled in the mass-market, premium and luxury segments in the future. Dies wants to reduce this inefficient double structures.
Corporate insiders believe Volkswagen can leverage synergies and generate higher profits. Insiders believe that an operating profit of 25 billion euros is possible in three or four years.
Last year operating profit before special items was 17 billion euros. Of this flowed for the processing of the diesel scandal billion more. Nevertheless, the net profit of 11.6 billion euros was almost twice as high as last year.