Volkswagen Profit Below Forecast on Job-Cut Cost

Volkswagen reported a first-quarter profit below analysts’ estimates because of higher-than-expected costs to cut thousands of jobs.

Net income increased fivefold to 327 million euros ($410 million), or 83 cents a share, from 64 million euros, or 15 cents, a year earlier, the company said. Profit was short of the 394-million-euro median estimate of analysts surveyed by Bloomberg News. Sales for the Wolfsburg, Germany-based carmaker rose 21% to 25.3 billion euros.

Chief Executive Bernd Pischetsrieder spent 400 million euros in the quarter as part of an effort to cut as many as 20,000 jobs.