Volkswagen's (VW) profit has dropped by 20 percent in the first three months of 2016 as it continues to grapple with fallout from the diesel emissions scandal, BBC reported.
Pre-tax profit fell to EUR 3.2 billion in the first quarter, down from EUR 3.97 billion in the same period a year ago.
Chief executive Matthias Mueller said he was "satisfied" with the start of "what will undoubtedly be a demanding" 2016.
VW admitted last year that it installed software to cheat US emissions tests.
It has already set aside more than EUR 16 billion to pay for costs arising from the scandal.
The German giant has agreed a deal with the US Department of Justice in which it will buy back and "substantially" compensate more than 500,000 American owners of its diesel cars affected by the emissions cheating. Final details are expected in June.
"In the first quarter, we once again managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions," Mueller added.
Group sales revenue fell 3.4 percent to EUR 51 billion in the period.
Sales of VW-branded cars were particularly hard hit, with profit from that part of the business falling 83 percent to EUR 73million from EUR 514 million last year.
The company maintained its forecast of a 5 percent fall in 2016 sales revenue compared with last year, "depending on economic conditions - particularly in South America and Russia - and exchange rate developments as well as against the backdrop of the diesel issue".
However, it predicted "a marked decrease in sales revenue" in 2016 for its passenger car brands, which include Audi, Seat and Skoda.
"2016 will be a transitional year for Volkswagen... we remain confident that our operating business will again record solid growth this year," Mueller added.
VW shares fell 3 percent in Frankfurt to EUR 133.57 and are down 40 percent over the past 12 months.