Volkswagen posts record Q1 profit due to strong Audi sales in China

Volkswagen (VOW.ETR) reported record operating profit in the first quarter as Audi and VW brands continued to perform strongly in China, Bloomberg reported. Earnings before interest and tax more than tripled to US$4.27 billion, and sales increased 31%. VW’s Chinese joint ventures, which are not included in group-level operating profits, contributed another US$820 million to earnings. Models in particular demand are the Audi A8 sedan, the new A7 Sportback and the VW Tiguan compact sports utility vehicle. Adam Hull, an analyst with WestLB, said that VW is benefiting from a strong mix of higher-end models; sales of VW’s mid-range luxury Audi brand contributed 38% to group operating profit.