FRANKFURT, May 6 (Xinhua) -- German carmaker Volkswagen reported a jump in first quarter profits Thursday but warned that the impact of a global shortage of semiconductors would continue.
In a statement, the auto giant reported net profits of 3.4 billion euros (4 billion U.S. dollars), up from 517 million euros over the January-March period in 2020, and revenues of 62.4 billion euros with a year-over-year growth of 13 percent.
The hike in sales revenue was due to "increased sales volumes and stronger demand for higher-margin models," and the former was mainly driven by a strong recovery in car sales in China, "the group's largest single market," the carmaker said.
The impact of the shortage of semiconductors is likely to continue. "The shortage of semiconductors throughout the industry is expected to have a more significant impact in the second quarter than before," said Chief Finance Officer Arno Antlitz, who also said that Volkswagen has managed the semiconductor shortage "responsibly" in the first quarter of 2021.
Market conditions will continue to face challenges from "the economic situation, the increasing intensity of competition, volatile commodity and foreign exchange markets, securing supply chains and more stringent emissions-related requirements."
The group raised its outlook for an operating return on sales for 2021 to 5.5 to 7 percent, compared with an earlier target of 5 to 6.5 percent. Enditem
