WOLFSBURG (dpa-AFX) - German automaker Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) reported Friday that its third-quarter profit after tax declined 51.2 percent to 1.14 billion euros from 2.34 billion euros last year.
Operating result fell 48 percent from the prior year to 1.72 billion euros. Operating profit before special items grew 15.1 percent to 4.32 billion euros from 3.75 billion euros last year.
Total sales revenues in the quarter grew 5.8 percent to 55 billion euros from 52 billion euros a year ago.
In the quarter, total deliveries to customers increased 6.3 percent to 2.65 million units. Vehicle sales grew 7.7 percent to 2.64 million units. Production was up 9.6 percent to 2.61 million units.
Looking ahead, Volkswagen expects that deliveries to customers will moderately exceed the prior-year volume amid persistently challenging market conditions. Challenges will arise particularly from the economic situation, intense competition in the market, exchange rate volatility and the diesel issue.
Volkswagen expects the total sales revenues as well as sales revenues in the Passenger Car Business Area and Commercial Vehicles Business Area to grow by more than 4 percent year-on-year in 2017.
In terms of the operating profit before special items, it is estimated that the operating return on sales in 2017 will be moderately higher than the original target of between 6.0 and 7.0 percent.
In Germany, Volkswagen shares were gaining around 2 percent to 147.90 euros.
Copyright RTT News/dpa-AFX