Volkswagen shares are higher Tuesday, after the German car manufacturer’s third quarter profits came in above analyst expectations. Confirmation of the car maker’s outlook for an increase in sales was also welcome, coming despite its struggles to completely comply with tougher new anti-pollution rules.
By 1050 BST, VW shares were 3.90% higher at €147.98. The stock has been trending mainly lower in recent weeks, dogged, in part, by US-China trade war fears and the potential impact on the European autos market.
Volkswagen Q3 earnings
Volkswagen’s Q3 net profit was $2.7 billion, up from a year earlier and also beating analysts forecasts for around €2.3 billion. Total revenues, meanwhile, were higher than the same period a year earlier, hitting €55.2 billion in the third quarter.
The group also reported its Jan-Sept 2018 results, which were also above year ago levels – if just barely in some cases.
“The development in the first nine months of the current fiscal year is encouraging.,” said VW Chairman, Dr. Herbert Diess.
“We are still facing major challenges, that we and the entire automotive sector have to overcome. As we are currently in the midst of a groundbreaking transformation, we have to continue picking up the pace,” Dr. Diess added.
Following the better-than-expected third quarter earnings, which were achieved during a tough period for the German car maker, hurt as it was by struggles to ensure its entire fleet complied with new, tougher emissions rules, the company’s outlook is also relatively upbeat.
VW said its full-year 2018 outlook remains unchanged, despite the difficult backdrop across the autos market. It continues to target full-year vehicle sales growth of 6.5-7.5%, from 2017.
VW is also anticipating to achieve 10.7 million vehicle deliveries, which would be a “moderate” improvement from 2017. Total sales revenues for 2018, meanwhile, are forecast at €230.7 billion, a 5% increase from 2017.