BADEN-BADEN (dpa-AFX) - Unfavorable exchange rates and interest rate effects have caused leasing specialist Grenke 's profits to fall at the start of the year. Despite higher operating income, the bottom line was only a profit of just under 16 million euros, around 23 percent less than a year earlier, the SDax-listed company announced in Baden-Baden on Thursday. Nevertheless, CEO Sebastian Hirsch still expects a consolidated profit of 80 to 90 million euros for the full year. To this end, new leasing business is expected to reach 2.6 to 2.8 billion euros, as planned.

The Executive Board explained the drop in profit in the first quarter with "erratic exchange rate fluctuations" and the resulting valuation effects. In addition, the valuation of interest rate derivatives ate into earnings. However, Grenke was able to increase its operating income by around nine percent to 99.6 million euros, and selling and administrative expenses fell by just under four percent./stw/zb