The Volkswagen group closed March with an allocated net profit of 6,555 million euros, doubling the records of a year earlier.
A reduction in fixed costs, in addition to the good results of the Cupra brand, are the keys to the recovery of Seat. The Spanish brand returned to profit in the first quarter of the year after losses from Covid last year.
Within the Volkswagen group to which it belongs, the news is also positive. The first months of the year ended with an allocated net profit of 6,555 million euros, a doubling (+102%) compared to a year earlier, while revenues increased by 0.6% to 62,742 million euros.
The Volkswagen consortium, which continues its transformation into a mobility service provider, will continue to work towards its “ambitious” environmental goals, which include reducing emissions from its factories by 30% to 50% between 2018 and 2030.
Before the end of the year, in the context of the complicated global situation, the company expects its worldwide registrations to be between 5% and 10% above those of 2021, despite the continuity of the semiconductor supply problem, which will expected to improve in the second half of 2022.
In addition, the company estimates that the Passenger Car division will close the current year with sales volume between 8% and 13% higher than in 2021, with an operating return on sales before extraordinary items of between 7% and 8.5%.
The Seat brand returned to the path of profitability in the first quarter of 2022, achieving an operating profit of 5 million euros, compared to a loss of 36 million euros a year earlier, according to the quarterly accounts of its matrix, the Volkswagen Group, published. this Wednesday.
The company justifies this improvement in results between January and March by optimizing fixed costs and also revenues, while pointing out that this return to profit was helped by the increased demand for the Cupra Formentor and the good reception in Born’s electric market. .
The worldwide registrations of the company based in Martorell (Barcelona) reached a volume of 91,407 units in the first quarter of 2022, a decrease of 27.2% compared to the same period of the previous year.
Between January and March of this year, the car company posted a turnover of 2,404 million euros, a decrease of 15.6% compared to the 2,851 million euros it invoiced in the same quarter of 2021.
German group Volkswagen posted an attributable net profit of 6,555 million euros in the first three months of 2022, more than double (+102%) of the profit of 3,244 million euros it made a year earlier, according to the consortium’s quarterly accounts this year. published on Wednesday.
The company pointed out that these “solid financial results” were delivered despite the complicated global environment, thanks to the improvement in its sales mix, best prices, as well as the cost discipline it applies and the flexibility of production, in the context of the supply crisis of components.
“Volkswagen mitigated the impact of semiconductor and wire harness outages by reallocating resources in its key markets in Europe, China and America,” they explained of the German consortium.
The chairman of the Volkswagen Group, Herbert Diess, confirmed that the multinational has again shown “great resilience” in the first quarter, despite the “unprecedented challenges” the world is facing due to the conflict between Russia and Ukraine and also from the persistence of the pandemic and its impact on supply chains.
The consortium’s revenues between January and March were EUR 62,742 million, a slight increase of 0.6% in the year-on-year comparison, while global sales of vehicles of all its makes reached 1.89 million units, a year from 21.9% discount on an annual basis.
Volkswagen posted an operating profit of 8,323 million euros in the first quarter of 2022, an increase of 73% from 4,812 million a year earlier, and a doubling (+99.3%) in gross profit to 8,895 million euros.
The car multinational produced a total of 2.04 million vehicles worldwide between January and March this year, a decrease of 11.9%, while the global workforce shrank by 0.7% to 668,300 people.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
