German carmaker Volkswagen (VW) posted a 20 per cent dip in first-quarter earnings today but pledged to match last year's full-year pre-tax profit.
Europe's biggest carmaker posted pre-tax profit for the first three months of the year of €997 million, slightly better than consensus expectations of €957 million but down on the €1.245 billion posted in the same period last year.
"We assume that in the full year 2002 we will at least match the pre-tax profit of the preceding year," the firm said in a statement.
However, an economic recovery in the United States and Western Europe is expected at the earliest only in the second half of the year.
The firm posted sales of €21.3 billion, down 5 per cent from a year ago. VW has been hurt by weak demand in its key markets in Europe and the United States.