The German car company Volkswagen regains profit, but continues to be affected by the scandal of false emissions. Indeed, in the first quarter the profits of the Wolfsburg group fell by 20% compared to the same period of 2015 to 2,306 billion euros, a drop higher than analysts' expectations (2,45 billion euros).
For Volkswagen, however, this is an encouraging figure after a 2015 financial year closed with a loss of 1,58 billion, the first loss in the last 15 years, due to the 16,2 billion of provisions booked to cover the costs of the Dieselgate. However, the market received the results badly: the stock at Frankfurt Stock Exchange it drops around 11 am by 2,7% to 134.14 euros, after having also dropped by -4% to 133 euros.
I revenues fell by 3,4% to 50,964 billion, against the consensus 51,7 billion, despite the unexpected increase in deliveries of 0,8% to 2,508 million. The decrease in sales volumes of 1,2% to 2,555 million and the unfavorable currency context penalized the turnover.
Operating profit instead improved by 3,4% to 3,44 billion, against the 2,73 billion expected, for a margin that rose from 6,3% to 6,8% thanks also to benefits of 300 million linked to currency adjustments linked to provisions for Dieselgate. Net of this benefit, operating profit decreased by 5,9% to 3,13 billion, with a margin down from 6,3% to 6,1%.
In light of the impact of the emissions scandal, Volkswagen has confirmed the estimates for the full year by virtue of a first quarter in line with its expectations. The group expects a decline in revenues of up to 5% due to the negative performance of some markets such as Russia and South America and the developments of Dieselgate, particularly in the USA. The operating margin is expected to be between 5% and 6%. “2016 will be a year of transition for Volkswagen, but we are confident that our operating business will again experience solid growth this year,” Mueller reiterated.
