Volkswagen exceeded analysts’ estimates and posted a nine-month profit that’s more than sixfold. However, VW predicts that there will be a slowdown in the current quarter’s growth.
It posted a net income of 4 billion euros ($5.6 billion), compared with 655 million euros a year earlier. In a Bloomberg survey, four estimates from analysts predicted profit of 2.8 billion euros.
Sales went up by 20% to 92.5 billion euros. VW didn’t provide a breakdown of the third-quarter figures. VW’s profit is affected by the Audi luxury unit and growing markets such as China.
In a statement, VW said that the growth rate in the first nine months won’t continue “as strongly” in the fourth quarter. Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler, said that the company is “fairly cautious on the outlook.”
Pieper calls these results as “extremely good” and describes VW as well positioned, facing no actual risks for a significant weakening of the business.
Sales of VW’s seven passenger-car brands, including Audi and Czech unit Skoda, in the first nine months of the year, had increased by 13% to a record 5.37 million vehicles. These figures exclude deliveries at Porsche SE, which is merging with VW. New models will be presented, including the Audi A7 coupe, the VW Passat station wagon or Bentley’s new Continental GT coupe.
This new lineup is expected to boost demand in China, western Europe, North and South America. A source said that VW expects to hit its sales goal of 10 million vehicles by 2015 (three years earlier than planned). The source added that VW targets over 8 million deliveries by 2012. [via autonews - sub. required]