VW Financial Services contributed €353 million (£290 million) to the operating profit of the Volkswagen Group as the company posted first-quarter profit of €2.9 billion ($3.9 billion), up 21.8% from last year.
The figures contained within the group’s quarterly interim report came off the back of a 5.8% increase in global sales and a 2.7% increase in sales revenue ― to €47.8 billion ($65 billion) ― in the first three months of the year.
The figures, which exclude the Chinese joint ventures with SAIC and FAW Group, helped take the manufacturer to a €2.5 billion ($3.4 billion) profit, a 31% increase on the same period last year. Volkswagen Chairman Martin Winterkorn, said: “The Volkswagen Group has established a strong position in recent years. Our good start to the current fiscal year is an additional proof of this. We must now continue improving our position and maintain our successful course as part of the systematic implementation of our strategy.”
Also within the report, the financial services division saw a reduction in liquidity over the quarter, as capital requirements rose. All but one of the group’s manufacturing divisions reported an increase in profit, with Škoda posting an increase of 65.2% to €185 million ($252 million) and Bentley increasing profit 65.7% to €45 million ($61 million). Seat SA remained in the red, but increased profitability to post an operating loss of €36 million ($49 million) for the quarter versus a €46 million ($63 million) loss for the previous year.
The outlook at the VW Group looked good according to the report, with the financial services division expected to make a return on sales of between 8% and 9% for 2014, with the expected return on sales for the rest of the group being between 5.5% and 7.5%.
