Volkswagen Q1 operating profit beats estimates

Volkswagen, Europe's largest carmaker, posted first-quarter operating profit that beat expectations and continues to forecast higher full year revenue and earnings on growing demand from emerging markets. Operating profit, which does not include earnings from its lucrative China business, surged to €2.91 billion ($4.26 billion), surpassing the 2.19bn estimated on average from a Reuters poll of 11 analysts.

But Volkswagen warned on Wednesday that continuing volatility in interest and exchange rates as well as commodities prices would weaken the positive volume effect this year. France's Renault on Tuesday also reported forecast-beating sales but predicted the impact of the Japan earthquake and tsunami on the auto industry supply chain could lead to slower production in the coming months.