Volkswagen Group reported higher-than-expected operating profit in the third quarter, driven by strong demand for models from Audi and Porsche in Europe and China.
Earnings before interest and taxes rose 16 percent to € 3.23 billion ($ 4.1 billion) in the largest automotive group in Europe, VW said Thursday, beating analyst estimates.
Encouraged by a recovery in the major European markets, the automaker stuck to its guidance for operating profit margin in 2014 between 5.5 percent and 6.5 percent, after 5.9 percent the year past.
He also confirmed a forecast of income within a range of plus or minus 3 percent record € 197 billion last year.
Quarterly revenue rose 4.1 percent to € 48.9 billion, VW said.
"We have become a strong performance in the year to date," said VW Group CEO Martin Winterkorn said in the statement. "However, we must continue to focus on laying the foundation now that will allow us to respond" to the challenges in the automotive industry.
After years of rapid increases to pursue his goal of surpassing Toyota Motor Corp. as the largest automaker in the world sales, Volkswagen has shifted the focus of protecting the gains amid increased spending to meet emissions standards stricter and develop new technologies.
The car brand VW, the largest unit of the group Winterkorn plans to reduce costs and increase productivity to improve the revenues of € 5 billion in 2018.
Record sales
Vehicle sales in the third quarter of VW Group rose 4.1 percent to a record 2.43 million cars, with volume growth in China and Europe offset declines in the Americas, keeping on track VW car hit a target sale of 10 million this year, four years earlier than planned.
Quarterly installments of Audi and Porsche models, which account for about two thirds of VW Group's earnings before interest and taxes (EBIT) rose 7.2 percent and 25 percent, respectively, 429,250 and 47,800 cars .
So far this year, Audi has sold 1.3 million vehicles worldwide, a jump of 10 percent, while Porsche sales increased 13 percent to 135,600.
Audi's second largest luxury car maker in the world, has been pushing to reduce the gap namesake brand sales for BMW Group in the back of the new vehicles, such as compact sedan A3. Audi recorded an increase in the third quarter by 6 percent in operating at 1.16 million profit. Nine-month operating profit of Audi rose slightly to 3.8 million from € 3.7 billion during the same period last year.
The Skoda brand centric value registered an increase of 77 percent in third quarter operating profit to 226 million euros, driven by demand for the sedan and wagon quickly. The company said nine-month operating profit increased 76 percent to € 651 million, while revenue grew 19 percent to 8.8 million in the period. The Skoda vehicle sales rose 13 percent to 774,100 vehicles in the first nine months.
But operating profit in passenger car brand core, most VW unit sales and revenue, has fallen as the mass market division faces stagnant sales, high fixed costs and spending on technology as a platform MQB modular production VW.
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