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VW records strong profits

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VW records strong profits
Photo: DPA
09:36 CEST+02:00
Volkswagen, the biggest European carmaker, reported Friday a strong operating profit of €4.8 billion for the first nine months of 2010 and said its full-year figure would show gains as well.

The nine-month figure was more than three times higher than the €1.5 billion posted in the same period of 2009.

Sales rose to €92.5 billion, a gain of 19.9 percent, a statement said, before adding that the group did not expect growth to be as strong in the fourth quarter of the year.

VW said full-year sales and operating profit were nonetheless expected to mark significant gains owing to strong demand, especially in China.

But the fourth quarter would see more muted growth, a situation that VW executives have already mentioned.

Pre-tax profit for the nine-month period leapt to €5.44 billion, a huge gain from the 2009 figure of €1.07 billion.

Pre-tax profit was boosted by €863 million in contributions from investments that included joint ventures in the robust Chinese auto market and options linked to the takeover of the luxury sports car maker Porsche, VW said.

Volkswagen and its nine other brands delivered 5.4 million vehicles in the period from January through September, an annualised gain of 12.9 percent.

That gave the German group a market share of 11.6 percent, a slight gain on the year, it said.

After suffering from a slump in global sales amid the economic downturn last year, VW was well positioned to rebound owing to its strong presence worldwide.

"China, Western Europe, North America and Latin America remain sources of growth in demand," the statement said.

Shares in VW jumped by 2.40 percent to €96.03 in late trading on the Frankfurt stock exchange, while the DAX index of blue-chip stocks was essentially unchanged overall.

VW is to release detailed results on Wednesday.

AFP/bk

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