Profit slips at Volkswagen after accounting change

Frankfurt: Profits have slipped at automaker Volkswagen in the first quarter due to a change in accounting rules, but sales increased and the company recorded no significant additional losses from its diesel emissions scandal. Net profit fell 2 per cent to €3.3 billion (Dh14.7 billion) on sales that rose 4 per cent to €58.2 billion. The company said Thursday that operating profits, which exclude financial items such as interest and taxes, fell to €4.2 billion from €4.4 billion — but would have shown an increase without the accounting changes, which affect how financial derivatives are valued.

CEO Herbert Diess, who took over as CEO from Matthias Mueller on April 12, says the company is “in a robust position” with net cash of 24.3 billion in the automotive division. The company took “no significant provision” related to the 2015 emissions scandal.