(new: Porsche SE)
WOLFSBURG (dpa-AFX) – The VW (Volkswagen (VW) vz) Group increased sales and operating profit in the third quarter. However, he is becoming more cautious when it comes to operating profit for the current year. The board of directors believes the group is still on track to achieve its sales target and the delivery range, which was only capped in the summer, should also be adhered to. However, the managers are only targeting the previous year’s figure of around 22.5 billion euros for the operating result, as the DAX (DAX 40) group announced on Friday evening. The Volkswagen umbrella holding company Porsche SE (Porsche Automobil vz), however, confirmed its earnings forecast.
The Volkswagen board had previously forecast an operating margin of 7.5 to 8.5 percent with sales growth of 10 to 15 percent compared to the previous year. The revenue is expected to increase to 307 to 321 billion euros. The Executive Board justified the adjustment of its annual targets with raw material hedging transactions. It was said that the effects amounting to 2.5 billion euros could no longer be compensated for by the end of the year.
From the perspective of JPMorgan industry expert Jose Asumendi, the new profit forecast is not a substantial deterioration. However, the target suggests that Volkswagen is expecting a particularly strong final quarter. The group has always made a final push in recent years, he commented. The company is still sticking to the promised increase in revenue, as well as the delivery target of 9 to 9.5 million vehicles that was capped in the summer.
The VS parent company Porsche SE, however, confirmed its previous earnings forecast. Group earnings after taxes are expected to reach the lower end of the range of 4.5 to 6.5 billion euros.
Meanwhile, VW Group revenue for the three months to the end of September climbed by 12 percent to 78.8 billion euros based on preliminary figures. Of this, around 4.9 billion euros remain as operating profit. Last year, Volkswagen reported around 4.2 billion euros as operating profit. The operating return of 6.2 percent was slightly lower than analysts had expected on average.
According to the company, the car segment was able to grow “significantly”. However, the loss of production by a supplier in Slovenia after a flood is a burden. After the plants in Portugal and Hanover, the main plant in Wolfsburg also announced at the beginning of September that it would reduce production from the middle of the month. Also higher product costs for Volkswagen brand models, Skoda, Seat and Cupra put pressure on the balance sheet. Volkswagen plans to present the full figures on October 26th./ngu/he
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