Volkswagen profits tumble after emissions scandal

Volkswagen profits tumble after emissions scandal

Volkswagen saw profits tumble by nearly a fifth at the start of 2016 as it continued to grapple with the fall-out from its global emissions scandal.

The group posted a 19.3% drop in pre-tax profits to €3.2bn for the three months to the end of March, with revenues down 3.4%.

But chief executive Matthias Mueller insisted it was a "respectable" result, with operating profits edging 3.4% higher to €3.4bn from €3.3bn a year earlier, boosted by one-off effects.

He said: "In light of the wide range of challenges we are currently facing, we are satisfied overall with the start we have made to what will undoubtedly be a demanding fiscal year 2016.

"We once again managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions."

Volkswagen faces heavy costs for recalls and fixes to cars with engine-control software that evaded emissions tests.

The company has already earmarked €16.7bn to cover recalls and other costs for 11 million cars sold with the software globally.

More in this Section

Survey finds huge drop last year in firms leasing flexible office space in DublinSurvey finds huge drop last year in firms leasing flexible office space in Dublin

Business leaders warn of workers shortage in NI under new UK immigration rulesBusiness leaders warn of workers shortage in NI under new UK immigration rules

Investor BGF opens Cork office to target Munster firmsInvestor BGF opens Cork office to target Munster firms

Ryanair appeals jury’s decisionRyanair appeals jury’s decision


Lifestyle

Not all trends are created equal. Some are exciting – like first-date butterflies; others are comforting – like ice-cream and Golden Girls reruns.Trend of the Week: Floral free for all

Veterinary medicine is a demanding career, leading to mental health problems for some vets.Elephant in the clinic: Helpline offers support to vets with mental health difficulties

Pearl Lowe turns 50 in April – and she’s got a lot to celebrate. TA look into the reinvention of Pearl Lowe

Bonnie Ryan couldn’t be happier.On a roll: Why Bonnie Ryan couldn't be happier

More From The Irish Examiner