Despite the war in Ukraine and faltering production due to the fight against corona in China, Volkswagen made billions in profits at the beginning of the year.
The Wolfsburg-based company benefited massively from financial instruments with which the group has hedged against the rise in raw material prices.
The operating result before special items jumped to around 8.5 billion euros in the first quarter, as the carmaker reported on Thursday based on initial estimates.
A year ago, the operating profit was 4.8 billion euros.
The operating return almost doubled in the first three months compared to the same period of the previous year to 13.5 (7.7) percent.
In addition to the robust operating business, a positive fair value assessment of hedging instruments of 3.5 billion euros also ensured the increase in profits, VW said.
Due to the long-term hedging through financial instruments, the group still pays prices for raw materials at the same level as they were before the Ukraine war.
The difference to the current price level ensures a book profit.
Outlook is not adjusted
With a view to the year, the management around CEO Herbert Diess said that there was still a risk that the progress of the Ukraine war would have a negative impact on the car company's business.
This could also result from supply bottlenecks in the supply chain.
Further developments on the raw materials markets are also unpredictable, which in turn could have a significant impact on the valuation of hedging transactions.
Volkswagen also referred to the possible negative effects of an intensifying corona pandemic and the ongoing supply bottlenecks for semiconductors.
However, Volkswagen has not changed its outlook for the current year.
Accordingly, the group expects an operating return of between 7.0 and 8.5 percent for 2022.
Sales are expected to increase by between eight and 13 percent.