German carmaker Volkswagen on Tuesday said its operating profit dropped by 20% in the first quarter as weaker demand for its premium brands drove a drop in sales.
Operating profit came in at 4.6 billion euro ($4.9 billion) in the first three months of 2024, the company said. In the same time period in 2023, operating profit had been 5.7 billion euros.
Volkswagen cited lower sales and higher fixed costs as well as “an unfavourable country, brand and model mix” as key factors in the profit decline.
Vehicle sales were down 2% in the first quarter, totalling 2.1 million units, the company said Tuesday.
“As expected, our first quarter results show a slow start to the year,” Volkswagen Group CFO and COO Arno Antlitz said in a statement.
Volkswagen said it was still expecting to reach its 2024 financial targets, including sales revenue rising by 5% and a full-year operating margin between 7% and 7.5%.
“We expect additional momentum over the course of the year from the launch of more than 30 new models across all brands. At the same time the effects our efficiency programs will gradually unfold as the year progresses,” Antlitz said.
This is a breaking news story and will be updated shortly.
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