FRANKFURT — German automaker Volkswagen saw net profit fall 19
The company also faced plummeting sales in Russia and Brazil due to those countries' troubled economies.
Profits for the January-March period fell to 2.37 billion euros ($2.63 billion) from 2.93 billion euros a year earlier, the company said Tuesday. Revenue fell 3.4
The net profit figure fell short of the 2.44 billion euros expected by analysts surveyed by financial information provider FactSet.
Earnings and profit margins slipped at luxury brand Audi, one of the company's major money-makers. Operating profit eased to 1.3 billion euros from 1.4 billion euros a year earlier. The profit margin fell to 9.0
Things went better at the company's Porsche brand. Operating profits, which exclude financial items such as interest and taxes, rose 14
Sales fell 35
Volkswagen, based in Wolfsburg, Germany, faces heavy costs recalling and fixing cars that are equipped with engine-control software that could detect when a car was on a test stand and turned off the emissions controls during everyday driving.
CEO Matthias Mueller said in a statement that the company "managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions." The company set aside 16.2 billion euros from its earnings last year to deal with recalls and other costs.
The company has reached a tentative agreement in federal court in San Francisco with U.S. authorities, who first uncovered the cheating, to buy back or repair some 500,000 vehicles. Volkswagen, the U.S. Department of Justice and attorneys for Volkswagen owners have until June 21 to file a final settlement with the court.
The company reaffirmed its forecast for the full year, saying that it expects sales revenue to fall 5