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Volkswagen Q1 profit falls significantly

Christian Fernsby |
Volkswagen Group reported that its first quarter earnings before tax declined to 0.7 billion euros from 4.1 billion euros, previous year. Operating profit before special items decreased significantly by 81.4 percent to 0.9 billion euros.

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First quarter sales revenue declined by 8.3 percent to 55.1 billion euros. Deliveries to customers decreased by 23.0 percent to 2.0 million vehicles.

CFO Frank Witter: "The global coronavirus pandemic substantially impacted our business in the first quarter. We've taken numerous countermeasures to cut costs and ensure liquidity and we continue to be robustly positioned financially."

The Volkswagen Group expects deliveries to customers in 2020 to be significantly below the prior year due to the impact of the Covid-19 pandemic. Sales revenue is expected to be significantly below the prior s year's level. The Volkswagen Group expects operating profit for 2020 to be severely below the prior year, but still to remain positive.

At the end of March 2020, net liquidity in the Automotive Division was at 17.8 billion euros. For full year, the company projects net liquidity in the Automotive Division will fall short of the previous year's level.

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