Volkswagen has reported nine month operating profit down to EUR1.5bn (US$2.1bn) from EUR4.9bn (US$7.3bn) a year ago, blaming heavy losses at its Spanish Seat and British Bentley brands.
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However the company said net liquidity in its automotive division increased to EUR13.4bn (US$20bn) from EUR5.4bn (US$8bn) at the end of 2008.
VW still expects a full year drop in earnings due to weaker sales and rising refinancing costs.
Third quarter operating profit dropped to EUR278m (US$415.3m) well short of the EUR415m (US$620m) average estimate in a Reuters poll of analysts. Automotive net cash flow in the first nine months was EUR5.1bn (US$7.6bn).
CEO Martin Winterkorn said: “The trend in the automotive industry means that there is no reason for premature optimism. The business climate remains tough,”
Audi’s nine-month operating profit fell to EUR1.2bn (US$ 1.8bn) from EUR2.1bn (US$3.1bn) after a 12% drop in car sales. Skoda’s operating profit fell to EUR162m (US$242m) from EUR455m (US$680m) following a 19% fall in sales.
Losses at Seat widened to EUR228m (US$340.6m) from EUR30m (US$44.8m). Bentley reported a EUR148m (US$221m) loss from an EUR83m (US$124m) profit the year before due to a slump in luxury car sales.
VW said its nine-month results did not include a EUR500m (US$7474m) profit from its joint ventures in China, its largest market.
