News Column

VW profit up 22 percent

April 29, 2014

By Mike Pare, Chattanooga Times Free Press, Tenn.



April 29--Volkswagen Group's first-quarter operating profit surged 22 percent, boosted by higher sales at the luxury Porsche and Audi brands, to $3.97 billion, the company reported today.

"We must now continue improving our position and maintain our successful course," said Martin Winterkorn, the chief executive of the company which has an assembly plant in Chattanooga and is weighing an expansion of the 2,700-worker factory.

Sales revenue rose by 2.7 percent in the first three months of the year, the company said in a statement.

Global demand continued to rise in the quarter though market trends were mixed at a regional level, the company said. The number of new sales in the Asia-Pacific region, Western Europe, North America and Central Europe increased year-on-year, while the emerging markets in South America and Eastern Europe recorded lower volumes, the company reported.

The German automaker is expecting a "moderate" increase in sales in fiscal year 2014. Challenges will come from the difficult market environment and competition, as well as interest rate and exchange rate volatility and fluctuations in raw materials prices, the carmaker said.

Volkswagen said officials believe that the modular toolkit system, which is being continuously expanded, will have an increasingly positive effect on the Group's cost structure.

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Source: Chattanooga Times Free Press (TN)