Volkswagen defies financial turmoil, posts robust earnings

Notwithstanding the adverse macroeconomic environment and the worsening financial crisis, the Volkswagen Group today reported an increase in its deliveries, sales revenue and profit in the first nine months of the current fiscal year.

Europe's largest automobile manufacturer posted an operating profit of 4.9 bn euro, a significant rise of 15% while its profit after tax rose by 28.5% to 3.7 bn euro.

"Volkswagen has performed well so far in a difficult environment. With its young and environmental friendly model range, flexible production, solid finances and an outstanding team, the group's foundations are sound," Volkswagen Aktiengesellschaft's Board Chairman Martin Winterkorn said.

 

Sales revenue of the company climbed by 5.5% to 85.4 bn euro in January to September period. Besides, the Group increased deliveries to 4.8 mn vehicles, beating the previous year's figure by 3.9 per cent, a company statement said.

Meanwhile, its share of the passenger car market worldwide also rose to 10.1 per cent against 9.6 per cent.

"We are confirming our forecast for 2008, despite the dramatic deterioration in global economic conditions and the automotive industry environment in recent months", Volkswagen Group CFO Hans Dieter Ptsch said.

For the current year, the board of management continues to expect that deliveries, sales revenue and operating profit would exceed the previous year's figures.