VW lifts earnings outlook after higher third-quarter profit

VW lifts earnings outlook after higher third-quarter profit
Group revenue may exceed last year’s €217.3 billion by more than 4 percent, VW said. (AFP)
Updated 27 October 2017

VW lifts earnings outlook after higher third-quarter profit

VW lifts earnings outlook after higher third-quarter profit

BERLIN: Volkswagen lifted its profit guidance for this year after posting forecast-beating group earnings in the third quarter, benefitting from cost cuts at its core autos division.
Quarterly group earnings before interest and taxes (EBIT) before special items jumped 15 percent to €4.31 billion from €3.75 billion a year ago, Volkswagen (VW) said on Friday.
That beat even the highest estimate of €4.17 billion in a Reuters poll of banks and brokerages.
The Wolfsburg-based company said it now expected the group’s operating margin to moderately exceed a target corridor of between 6.0 and 7.0 percent, having previously guided for the margin to hit that range.
Group revenue may exceed last year’s €217.3 billion by more than 4 percent, VW said, keeping its previous guidance. Nine-month revenue was up 6.8 percent to €170.9 billion.