Profit slips at Volkswagen after accounting change

April 26, 2018 - 3:39 am

FRANKFURT, Germany (AP) — 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 percent to 3.3 billion euros on sales that rose 4 percent to 58.2 billion euros. The company said Thursday that operating profits, which exclude financial items such as interest and taxes, fell to 4.2 billion euros from 4.4 billion euros — but would have shown an increase without the accounting changes, which affect how financial derivatives are valued.

CEO Herbert Diess 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.

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