Volkswagen Group has beaten analyst estimates with third quarter financial results that included a 20% rise in operating profit despite what it described as a ‘difficult market environment’.
Third quarter earnings before interest and taxes increased by 20% to EUR2.8bn. Volkswagen’s share price on the DAX rose sharply earlier today.
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VW said that sales revenue in the first nine months of the year was up to EUR145.7bn (versus EUR144.2bn last year), despite the negative effects of exchange rates and continued market slump in Europe. In the third quarter, sales revenue declined to EUR47bn (EUR48.8bn last year).
Group deliveries in the first nine months increased by 4.8% to 7.2m vehicles worldwide. VW said that the group’s share of the passenger car market rose year-on-year to 12.7% (12.6% same period of last year).
The company highlighted efforts to contain costs.
“We are focusing on disciplined cost and investment management, as well as on further improving all our processes,” Chief Financial Officer Hans Dieter Poetsch said in a statement. “This is particularly important given the fact that the economic environment is not expected to improve in the short term.”
Volkswagen left its forecast for 2013 unchanged. It expects group sales revenue to exceed 2012’s but the group’s operating profit goal is to match 2012’s level.
