The profit from basic operations of the German automotive group Volkswagen AG in the first quarter fell less than the forecasts, as demand for expensive models of Audi and Porsche offset the impact of diesel scandal on the business.
Operating profit, excluding one-time items of the balance of the largest automaker in Europe, fell 5.9 % to 3.1 billion euro ($ 3.5 billion) with a decrease in revenue of 3.4 %.
Profit was better than the average forecast of analysts polled by Reuters, at the level of 2.8 billion euro. Nevertheless, Volkswagen said that it is waiting for a difficult year amid attempts to restructure the business after the worst crisis in its 79-year history. Volkswagen AG's net profit in the 1st quarter of 2016 decreased by 19%, to 2.37 billion euro, compared with 2.93 billion euro in the same period a year earlier, according to a press release from the German automaker.
Volkswagen's revenue in January-March fell 3.4%, to 50.96 billion euro. The decrease in revenues is due mainly to adverse fluctuations in exchange rates, according to a press release.
VW recorded a record loss last year, reserving 16.2 billion euro for the costs associated with the scandal, including legal costs, costs of recalls and compensation to customers.
VW expects to achieve in the next month an agreement with the US authorities and car owners about compensation, continuing the strategic reorganization.
Published on Tuesday, the company's quarterly results do not indicate any new costs in connection with the scandal.
The first quarter results reflect the improvement in the VW car sales in a recovering demand in China and the recovery in the lucrative European market.
"In light of the wide range of challenges we face at the moment, we are satisfied with the start of 2016," - said CEO of Volkswagen, Matthias Müller. "In the first quarter we were able to limit the economic impact of the diesel scandal and achieved decent results in difficult conditions", - he added.
VW reaffirmed the growth forecast of 5-6 %, declared in April, compared to 6 % in the past year.