The Volkswagen logo appears on Serramonte Volkswagen November 18, 2016 in Colma, California.
Justin Sullivan | Getty Images
Volkswagen reported the first quarter results in line with expectations on Thursday, as the automaker is trying to accelerate its transformation.
The German firm achieved an operating profit of EUR 3.9 billion three months of the year. That compared to the operating profit of 4.2 billion euros the year before. Analysts pointed out by Reuters had expected the first-quarter operating profit to come in at 3.9 billion euros.
Volkswagen, still struggling to recover from a 201
"It's probably very unfortunate that we had to order more provisions, but we consider every single risk and exposure we have continually, and it was time to make those provisions," said Frank Witter, CFO of Volkswagen, CNBCs "Squawk Box Europe "on Thursday.
The company confirmed its full-year guidance and said it expected sales to increase by as much as 5%. It forecast an operating return on sales between 6.5 and 7%.
Revenues increased by 3.1% to EUR 60 billion for the first three months of 2019, despite a decline in deliveries.
The company did not make a net profit
& # 39; Optimistic but realistic & # 39; of potential US tariffs
Earlier this year, Volkswagen CEO Herbet Diess said the automaker would double its efforts in 2019 to meet its ambitious annual targets.
Diess said the Financial Times in February that the biggest risk to Volkswagen's 2019 win would be potential tariffs from President Donald Trump's administration.
At that time, he estimates the worst case scenario of possible US rates could cost around $ 2.5 billion a year – about 13% of expected earnings.
"We certainly hope that trade disputes can be resolved, but it's no secret that 100% of Porsche cars are exported from Europe to the United States," Witter said.
He explained that about 70% of all Audi products were sold in the United States, while for Volkswagen passenger cars there was a very small percentage exported from Europe to the United States, since most cars were built in North America.
"So we still hope the best, we do everything we can, but we are not part of the negotiations … We continue to be optimistic, but also realistic," said Witter.
In February, Trump said he would impose tariffs on cars imported from the EU if the United States is talking to the block, cannot produce a new deal. The EU has since threatened to tax 20 billion euros of US goods.
Both sides have gently hanged on existing agreements, and promised not to make any charges before any calls have been made.