BREAKING NEWS

BREAKING NEWS

Volkswagen softens outlook for passenger car business as first-quarter profit falls

Volkswagen softens outlook for passenger car business as first-quarter  profit falls
FILE PHOTO: A Volkswagen logo is seen on a new car model at the 89th Geneva International Motor Show in Geneva, Switzerland, March 5, 2019. REUTERS/Denis Balibouse -
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Denis Balibouse(Reuters)
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FRANKFURT (Reuters) - Volkswagen set aside 1 billion euros (£858.1 million) for legal issues as it posted a 5 percent drop in first-quarter operating profit and warned that the profit margin for its passenger cars business will be at the lower end of expectations.

Volkswagen said it expects the return on sales for its passenger cars business to be at the lower end of its 6.5 percent and 7.5 percent target for the year.

Earnings before interest and taxes fell to 3.9 billion euros in the first quarter, in line with 3.92 billion euros expected by analysts.

Volkswagen stuck to its forecast of higher unit sales, revenue growth of up to 5 percent this year, and for a group operating return on sales of 6.5-7.5 percent.

(Reporting by Edward Taylor; Editing by Arno Schuetze)

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