VW posts surprise Q1 profit gain amid record sales

Reuters (Berlin) - Volkswagen (VOWG_p.DE) boosted operating profit by 10 percent in the first quarter despite shrinking demand for vehicles in the carmaker's western European core markets and spending on a technology overhaul.

Operating profit increased to 3.21 billion euros ($4.22 billion) from 2.91 billion euros a year earlier, the German carmaker said in a statement on Thursday, beating analysts' expectations for a drop of almost nine percent to 2.7 billion euros.

VW reaffirmed its outlook for 2012, saying it aims to match last year's operating profit of 11.3 billion euros and increase revenue from the 159.3 billion euros achieved last year.

Relying on continued expansion of car markets in Asia, the United States, Latin America and Russia, VW stood by its goal to increase deliveries beyond last year's record 8.3 milllion vehicles. VW's group auto sales increased 9.6 percent in the first quarter to a record 2.16 million units.