Dow futures turn positive; Glencore sees lower profits

Volkswagen AG’s earnings dropped by 40% in the first quarter as higher manufacturing costs cut into margins and US tariffs clouded the German carmaker’s outlook.

Earnings before tax came in at €3.1 billion ($3.5 billion) in the three months through March, down from €5.1 billion a year earlier, the company said Wednesday. Group operating margin fell to 3.7% from 6%.

Volkswagen has seen profitability drop as it confronts rising costs and excess capacity at European factories, as well as weaker demand in China, a key market. Meanwhile, US tariffs on car imports are threatening to hurt profits further, and demand for electric vehicles in Europe and the US has been uneven.