It’s a hammer result!
The Volkswagen Automotive Group made billions in profits in the first three months of the year – despite delivery difficulties due to the corona pandemic, despite the chip crisis on the global market and despite the influence of the war of Russia against Ukraine. Operating profit before exceptional items amounted to 8.5 billion euros, as VW announced on Thursday based on provisional figures. This is 77% more than the 4.8 billion euros in the first quarter of 2021.
► VW explained the strong profit increase by “robust operational development” and “positive valuations of hedging instruments” mainly in the area of raw materials for an amount of 3.5 billion euros. Because the group did not sell more cars – on the contrary: from January to March, the automotive group delivered around 500,000 fewer cars worldwide than in the same quarter of the previous year. This corresponded to a drop of almost 22%.
All-electric cars have seen growth: in the first quarter, VW sold around 99,000 electric cars, a 65% increase over the previous year. Demand for electric cars is high worldwide and order books are well filled, explained Hildegard Wortmann, head of sales. Without current supply bottlenecks, that number would have been significantly higher.
The group warned of a whole series of imponderables: “The effects of the continuation of the war in Ukraine still cannot be predicted with sufficient certainty.” ‘ could lead to new bottlenecks, especially in semiconductors. The evolution of commodity markets also remains “unpredictable”. Volkswagen will release final first-quarter sales figures on May 4.