Volkswagen’s third-quarter operating earnings increased 46%

Article by Christian A., on October 27, 2011

Volkswagen AG disclosed that its third-quarter operating earnings increased 46%, thanks to the demand for VW brand's Tiguan SUV and Audi's refurbished A6 sedan. Operating profit climbed to 2.89 billion euros or $4.05 billion from 1.99 billion euros last year, the company disclosed in its website. Revenue increased 25 % to 38.5 billion euros.

VW is expanding in the U.S. and China in an attempt to rise above Toyota Motor Corp. and replace it as the largest automaker in the world. VW is aiming to increase deliveries of SUVs, vans and cars by 11 percent this year to a record 8 million units.

The company plans to expend a record 62.4 billion euros within the next five years on models, facilities, and R&D to underpin its worldwide expansion. VW wants to employ at least 50,000 workers through 2018 as it aims for at least 10 million automobiles annually. Marc-Rene Tonn, an M.M. Warburg analyst recommending purchasing VW stock, confirmed that VW continues to perform "well in an increasingly challenging market place."

He added that the expansion is driven by a balanced model cycle and presence in key markets. He also added that the company "should be on track" to obtaining their 8 million sales target considering that its order books are full.

Volkswagen remains firm on its earlier estimates that EBIT and revenue for the whole year will be "significantly higher" versus in 2010. Net income increased more than three times to 7.04 billion euros. Profit was influenced by an increase from the revaluation of an option associated with VW's planned merger with Porsche Automobil Holding SE.

Topics: vw, earnings

If you liked the article, share on:

Comments

Recommended

It seems that BMW’s high-performance division -- BMW M – still has not warmed up to front-wheel drive vehicles. So those who had been looking forward to BMW M vehicles...
by - October 22, 2017
Porsche already has the Performance Package for their range-topping Macan Turbo, which is currently available in some countries. Soon, this model will be dethroned by something even fancier by the...
by - October 22, 2017
After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries