For the third quarter, Volkswagen’s luxury brand Audi had profitability that far exceeded market forecasts and thriving earnings from its China operations.
Last Wednesday, VW revealed detailed quarterly results and a full cash flow statement, indicating that Audi's quarterly operating margin exceeded 11%. In a statement, CEO Martin Winterkorn said that the company is “well-positioned to achieve the goals laid down in [its] Strategy 2018."
Last Friday, Volkswagen disclosed preliminary figures that analysts had said were a "blowout." However, VW warns that business in the current quarter could not keep up with the rapid pace seen in the first nine months.
The group's share of profits from the two Chinese joint ventures proportionate to VW's stakes amounted to 513 million euros ($715.8 million).
This was more than double the 231 million posted a year earlier. Since Volkswagen does not consolidate their results, earnings from the JVs are considered investment income below the operating profit line. Therefore, they can’t be held responsible for Friday's significant earnings beat before interest and tax.