Volkswagen records strong Q1 despite diesel scandal

German car maker Volkswagen experienced a strong start to the year, despite the recent announcement of far-reaching corporate restructuring and the ongoing diesel emissions scandal, the Wolfsburg-based company told press on Thursday.

Gross revenue during the first quarter (Q1) of 2018 rose by under four percent to 58.2 billion euros (70.8 billion U.S. dollars) thanks to record sales.

Although operating profit fell by around four percent to 4.2 billion euros, this circumstance was mainly due to changes in accounting standards at Volkswagen. Under the company's previous methodology, operating profit in Q1 would have risen as well.

Net profit was recorded at 3.3 billion euros, marking a slight decline compared to the same period last year (3.4 billion euros).

Newly-appointed chief executive officer Herbert Diess emphasized, however, the outlook for Volkswagen's earnings remained stable. The automotive juggernaut has set itself a goal for revenue growth of up to five percent in the course of 2018 and also wants to increase its operative return between 6.5 and 7.5 percent during the current year.

Volkswagen has recently announced the biggest structural reforms in its corporate history following a reshuffle of its executive management. Most significantly, Volkswagen's 12 brands will be combined into six core divisions in an effort to reduce inefficient parallel structures moving forward.

Diess will hereby serve simultaneously as the director of the wider Volkswagen Group and the head of its Volkswagen flagship brand. Analysts have predicted that synergy effects produced by the new corporate structure could help the company increase annual operating profits to the level of 25 billion euros within four years.

Volkswagen's strong quarterly earnings once again defied concerns that the car maker's involvement in the ongoing "dieselgate" scandal could weigh on its financial performance. Investors reacted positively to figures released by the company, and the share price of Volkswagen stocks rose by more than four percent in early Thursday trading.