Volkswagen, the fourth-biggest carmaker in the world that is soon to be a unit of Porsche, posted preliminary first-quarter results in line with expectations and reaffirmed its full-year targets.
VW said today operating profit rose 21 per cent to €1.31 billion ($2.09 billion). Its shares fell 1.8 per cent to €187.81 by 10.25am, the leading decliner among European car stocks.
Thousands of painful job cuts in Germany under its former management as well as booming sales in emerging markets helped Volkswagen post its best year of results ever in 2007 and emboldened Chief Executive Martin Winterkorn to set his sights squarely on overtaking industry giant Toyota.
"We expect demand for group vehicles to increase substantially - especially in the Asia-Pacific, central and eastern Europe, and south America regions," it said.
Volkswagen reiterated its forecast for higher vehicle sales, revenue and operating profit in 2008 as it rolls out new models like the four-door coupe Passat CC and the revival of the sporty Scirocco.
Quarterly revenue edged 1.4 per cent higher while net profit gained 26 per cent to €929 million.
Aided by VW's powerful chairman and Porsche scion Ferdinand Piech, Winterkorn bought majority control of Swedish heavy truckmaker Scania early in March as part of a plan to offer both subcompacts and long-haul tractor trailers as well as everything in between.
Tomorrow Volkswagen will hold what is expected to be a tumultuous annual general meeting.