Volkswagen Group Profit Slides on Lower Sales Volume Higher Costs
By David Sachs
Volkswagen Group posted lower sales revenue and profit margins in the first quarter on fewer vehicle sales and higher costs, but backed its full-year outlook.
The German carmaker said revenue finished the period at 75.46 billion euros ($80.90 billion) compared with EUR76.2 billion in the first quarter of last year, as vehicle sales slipped 2%. Analysts had expected revenue at EUR75.66 billion, according to the Visible Alpha consensus.
The group's operating result slid 20% to EUR4.59 billion, making for an operating return on sales margin of 6.1%, Volkswagen said. The company posted a margin of 7.5% in the first quarter of last year. After-tax earnings fell about 22% to EUR3.71 billion.
Volkswagen blamed the results on lower sales volumes, higher fixed costs, and an unfavorable regional and model mix.
"As expected, our first-quarter results show a slow start to the year," chief Financial Officer Arno Antlitz said.
Volkswagen Group reported a net cash outflow EUR3.03 billion compared with a positive balance of EUR2.24 billion a year prior.
The company backed its full-year outlook.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
April 30, 2024 01:56 ET (05:56 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
These Stocks Are (Still) Powering the Bull Market
-
5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom
-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
3 Dividend Stocks for June 2024
-
After Earnings, Is Alibaba Stock a Buy, Sell, or Fairly Valued?
-
MongoDB Earnings: Slashing Valuation as Execution and Macro to Blame for Lower Guidance
-
Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75
-
Zscaler Earnings: Impressive Traction in Emerging Products Drives Sales Growth for the Quarter
-
Dell Earnings: Raising Valuation on Strong AI, but the Stock Remains Severely Overvalued
-
After Earnings, Is Nvidia Stock a Buy, Sell, or Fairly Valued?
-
The 10 Best Companies to Invest in Now