Volkswagen profit jumps 17% on European recovery

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Volkswagen increased operating profit in the first quarter on cost cuts and improving European auto demand, winning some respite after the shock ouster of Chairman Ferdinand Piech.

Operating profit jumped 17 percent to 3.33 billion euros ($3.65 billion), from 2.86 billion a year earlier, VW said on Wednesday, close to the top end of a range in a Reuters poll of analysts, whose forecasts averaged 3.12 billion euros.

The German group stuck to its guidance for the 2015 operating margin to come in a range between 5.5 and 6.5 percent after reaching 6.3 percent last year.

VW also still expects group revenue to exceed last year's record 202 billion euros by as much as 4 percent on continued growth in deliveries.