VW’s profit during the first quarter matched analysts’ estimations and the automaker kept its 2013 earnings target.
VW’s EBIT dropped 26% to 2.34 billion euro, matching analysts’ estimations, and said it expects this year’s operating profit to be the same as in 2012.
“Business in the first quarter was dominated by the difficult economic environment, ” Chief Executive Officer Martin Winterkorn said in a statement. “The markets were sluggish, especially in Europe, and not least in Germany. But we remain confident overall that we can pick up speed over the rest of the year.”
VW managed to offset the drop in Europe with gains in the US and China. The automakers shares increased with 6.65 euro, the highest level since January 2nd, to 153.55 euro. Net income during the first quarter dropped 38% to 1.95 billion euro and revenue fell 1.6% to 46.6 billion euro. VW relies on its seventh generation Golf to keep sales up, on the A3 hatchback and the sedan version of this model which will be launched later this year.
“The results were in line with our expectations and it was clearly a positive signal that VW stuck to its full-year earnings guidance,” said Frank Biller, a Stuttgart-based analyst at LBBW who recommends buying VW stock.