Volkswagen Q1 profits drop 87%

Volkswagen AG said first-quarter profit fell 87% to the lowest in a decade because of higher costs to introduce new models, incentives to spur sales of the Golf car and currency shifts.

Net income fell to €26 million, or 2 cents a share, from €202m a year earlier, chief financial officer Hans Dieter Poetsch said on a conference call with analysts and journalists. Sales rose 6% to €21.9 billion from €20.7bn.