Volkswagen AG, Europe’s biggest carmaker, said the addition of luxury manufacturer Porsche partly offset a drop in first-quarter operating profit at the VW namesake brand caused by a recession in its home region.
The Audi division retained its position as VW’s largest earnings contributor with euro 1.31 billion ($1.71 billion) in first-quarter earnings, or 56 per cent of the group total versus 45 per cent a year earlier. VW-brand profit amounted to euro 590 million, falling 9 percentage points to 25 per cent of the total. Porsche, which was integrated into VW in August, generated 24 per cent of parent-company earnings.
Group first-quarter earnings before interest and taxes fell 26 per cent to euro 2.34 billion as revenue declined 1.6 per cent to euro 46.6 billion, VW had said on April 24. The operating loss at the Seat division in Spain, VW’s only unprofitable brand, widened to euro 46 million from euro 29 million a year earlier, the carmaker said on Monday. Earnings fell 46 per cent to euro 112 million at the Czech brand Skoda.
