Volkswagen Q1 profit jumps 40% as cost cuts materialise

Volkswagen's first-quarter group operating profit jumped 40 per cent to €4.37 billion (S$6.66 billion) from last year's €3.13 billion.
Volkswagen's first-quarter group operating profit jumped 40 per cent to €4.37 billion (S$6.66 billion) from last year's €3.13 billion.PHOTO: REUTERS

BERLIN (REUTERS) - Volkswagen reported one of its highest-ever quarterly group profits even as vehicle sales declined, a sign that long-overdue cost cuts are materialising as the carmaker pushes to overcome its emissions scandal.

First-quarter group operating profit jumped 40 per cent to €4.37 billion (S$6.66 billion) from €3.13 billion a year ago, Volkswagen (VW) said on Wednesday (May 3), joining rivals Daimler and BMW which have also reported better-than-expected quarterly results.

Results were helped by improving cost savings at VW's troubled core division, the carmaker said, sticking with expectations for the full-year group operating margin to come in between 6 and 7 per cent after 6.7 per cent in 2016.