Volkswagen’s sales revenue and profit grow

Volkswagen scraps full year outlook

Volkswagen (ETR:VOW3) posted a rise in sales revenue and profit on Wednesday.

Shares in the German multinational automotive manufacturing company were up during trading on Wednesday.

Volkswagen said that, in the first nine months of the current financial year, it performed well amid a “difficult” market environment.

The carmaker said that, between January and September, sales revenue rose by 6.9% year-on-year, amounting to €186.6 billion.

Operating profit before special items also increased, jumping 11.2% to €14.8 billion.

“Despite the gain in market share, the Volkswagen Group anticipates that vehicle markets will contract faster than previously anticipated in many regions of the world,” the company said.

In light of this, the company said that it expects deliveries to customers in 2019 to be on a level with the year prior. It had been expecting a slight increase.

“In terms of the Group’s operating profit before special items, an operating return on sales of between 6.5% and 7.5% is predicted. Including special items, the Group projects an operating return on sales at the lower end of the range announced,” Volkswagen said.

It expects sales revenue to exceed the prior year figure by as much as 5%, Volkswagen said.

“The Volkswagen Group achieves a good performance amid a challenging market environment. The performance in the first nine months of the financial year makes us optimistic that we will achieve our full-year targets for 2019,” Frank Witter, Member of the Board of Management of Volkswagen AG responsible for Finance and IT, said in a company statement.

“Continuous improvement in our profitability is key to mastering our ongoing transformation on our own. We will continue to work systematically towards this goal,” Frank Witter continued.

Shares in Volkswagen AG (ETR:VOW3) were trading at +0.43% as of 16:32 CET Wednesday.

Previous articleSports Direct lash out at CMA after publishing of incorrect market data
Next articleUK car production down 3.8% in September