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Volkswagen result q1 2019



The Volkswagen logo will be shown on November 18, 2016 at Serramonte Volkswagen in Colma, California.

Justin Sullivan | Getty Images

Volkswagen said on Thursday it will continue to hope for the best possible result, as fears that the US might soon impose tariffs on EU cars persist with a sense of realism.

It comes after President Donald Trump declared in February that he would impose tariffs on cars imported from the EU if US talks with the bloc failed to bring about a new deal. Since then, the EU has threatened to tax US goods worth 20 billion euros.

Both sides have persistently adhered to existing agreements and have promised not to do anything until the conclusion of the negotiations.

"Of course we hope the trade disputes can be resolved, but it is no secret that 1

00% of Porsche cars are exported from Europe to the US," said Frank Witter, CFO of Volkswagen, the "Squawk Box Europe "from CNBC. on Thursday.

He explained that about 70% of all Audi products were sold in the US, while Volkswagen exported a very small percentage of Europe to the US for passenger cars, since most of their cars were built in North America

"Well we still hope for the best, we do what we can, but we are not involved in the negotiations … We are still optimistic, but also realistic, "said Witter.

Earlier this year, Volkswagen CEO Herbet Diess said the automaker would have to double its efforts in 2019 to reach its ambitious annual targets.

Diess told the Financial Times in February that the biggest risk for Volkswagen's 2019 profit would be in potential Trump government tariffs. He estimated that the worst-case scenario in terms of potential US tariffs was about 2.5 Billions of euros a year – about 13% of the expected profit.

Earnings in line with expectations

On Thursday, Volkswagen had a first-quarter result with expectations as the company sought to accelerate the transformation.

The German company achieved an operating profit of 3.9 billion euros in the first three months of the year. This corresponds to an operating result of 4.2 billion euros in the previous year. Analysts surveyed by Reuters anticipate operating income in the first quarter of € 3.9 billion.

In the early morning hours, equities rose by 2.3%.

Fraud said that in the first quarter he had decided to pay a fee of 1 billion euros for legal reasons.

"It is certainly very regrettable that we had to book more provisions, but we assess every single risk and risk we have continuously, and it was time to make those provisions," Witter said, expecting sales to increase of up to 5%. The operating return on sales should be between 6.5% and 7%.

Sales increased by 3.1% to 60 billion euros in the first three months of 2019 despite declining deliveries.

The company did not earn a net profit figure.


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