The Volkswagen Group made an operating profit before special items of €11.3 ($10.2) billion in the first nine months of the year, an increase of 10.5% from sales of 2.454 million vehicles in Q3 and 7.653 million year-to-date. The sales revenue of €159.9 billion in Q3 was flat though compared to the previous year, and the operating return on sales before special items amounted to 7%.
However, earnings in the third quarter were hurt by more charges from the diesel emission fraud issue of €0.4 billion. For the period January to September, operating profit after special items amounted to €8.6 billion. Profit after tax was €5.9 billion. The share of operating profit attributable to VW’s Chinese joint ventures to the end of September 2016 was down at €3.6 from €3.8 billion.
The Volkswagen Passenger Cars brand’s unit sales of 3.2 million vehicles in the first nine months of 2016 dropped from the prior-year level. Operating profit before special items decreased to €1.2 billion. The decrease, per VW “is primarily attributable to volume, mix and exchange rate effects, as well as higher marketing costs because of the emissions issue.”
Chief Financial Officer Frank Witter said, “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.”
According to VW Group: “Depending on the economic conditions, exchange rate developments and the diesel issue, the Group expects its sales revenue in 2016 to match the prior-year level. In terms of the Group’s 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 5.0 – 6.0%.
About Ken Zino
Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
