WOLFSBURG (dpa-AFX) - German automaker Volkswagen Group (VKW.L, VLKAF.PK, VOW.BE), which has been entangled in diesel car emissions cheating issues, returned to profit in its third quarter, on lower special charges and slightly higher sales.
Looking ahead to fiscal 2016, the company expects its sales revenue to match the prior-year level, depending on the economic conditions, exchange rate developments and the diesel issue.
In terms of the operating profit before special items, it is anticipated that the full-year operating return on sales will be at the upper end of the forecast range of 5 to 6 percent.
The company expects deliveries to customers in 2016 to be slightly higher than in the previous year amid persistently challenging market conditions, with a growing volume in China.
Chief Financial Officer Frank Witter id, 'Despite major challenges and the negative impact of the diesel issue, the Volkswagen Group remains on a solid financial footing.'
He noted that the impact of the diesel issue, in particular, required a systematic, disciplined approach to investments and costs. 'But further significant improvements in productivity and profitability are needed across the whole Group,' he continued.
For the third quarter, profit after tax was 2.34 billion euros, compared to a loss of 1.67 billion euros a year ago. Operating profit was 3.31 billion euros, compared to loss of 3.48 billion euros a year ago.
The latest results included special charges of 442 million euros, compared to last year's charges of 6.69 billion euros.
Operating profit before special items was 3.75 billion euros, 17 percent higher than 3.21 billion euros a year ago.
Total sales revenue for the quarter edged up 1 percent to 52 billion euros from last year's 51.49 billion euros.
Total deliveries to customers increased 4.2 percent to 2.49 million units. Vehicle sales were 2.45 million units, up 4.4 percent. Production climbed 12 percent to 2.38 million units.
In the first nine months, Volkswagen Passenger Cars brand's unit sales declined from last year. Audi increased its unit sales by 0.7 percent. The Bentley brand increased its unit sales by 6.1 percent. The Porsche brand also lifted its vehicle sales by 5 percent.
The German carmaker earlier admitted that it had equipped about 11 million diesel vehicles with illegal software to cheat on American pollution tests.
On October 25, a federal judge approved a $14.7 billion settlement in the Volkswagen Group's diesel car emissions cheating case, one of the largest settlement in U.S. history. The deal provides about 475,000 owners of Volkswagens and Audis with diesel engines the option to either have their cars bought back or modified by Volkswagen. The settlement also sets in motion a billions of dollars to support environmental programs, reduce emissions and promote zero-emissions vehicles.
In early October, Volkswagen in a federal court filing confirmed that it has agreed to pay up to $1.21 billion to settle claims of its 652 U.S. dealerships related the emissions scandal.
In Germany, Volkswagen shares were trading at 125.45 euros, down 0.44 percent.
Copyright RTT News/dpa-AFX