Business Briefs: VW profits drop in first quarter

Business Briefs: VW profits drop in first quarter

April 30th, 2013 by Staff Reports and Wire Service in Business Around the Region

VW profits drop in first quarter

Volkswagen's namesake brand saw operating earnings slip by 45 percent in the first quarter, as it joined the ranks of European carmakers suffering a tough first quarter. The brand earned $772.8 million before interest and taxes, compared to $1.4 billion in the same period a year earlier.

"The current environment is definitely a tough challenge for the entire industry ," said Martin Winterkorn, the company's chief executive. At the same time, worldwide unit sales by the Volkswagen Group rose by 5.1 percent year-on-year in the first quarter to 2.4 million vehicles.

J.C. Penney gets new funding

J.C. Penney on Monday confirmed that Goldman Sachs will provide it with $1.75 billion in financing. The five-year senior secured-term loan can be used to fund the company's operations as well as pay off some of its debt. It will be secured by real estate, as well as an interest the company's other assets and some of its subsidiaries.

J.C. Penney said earlier this month it would draw $850 million from its $1.85 billion revolving credit line to pay for replenishing inventory.