German car-maker Volkswagen said today its first-quarter pre-tax profit rose 15 per cent from a year ago to euro 708 million. This is towards the lower end of expectations.
In the first quarter Volkswagen's sales rose 0.6 per cent despite weakening markets in both Germany and the United States.
VW shares are currently trading at the level where they started the year and have underperformed the Dow Jones European Auto Stoxx Index which is up 15 per cent.
The stock touched a high of euro 62.40 in early March following better-than-expected 2000 preliminary results but retreated to euro 46.70 a month later as analysts questioned the group's ability to cut costs amid worries about weakening demand for vehicles.