Volkswagen AG sees record third-quarter profit increase image

The German automaker, the largest auto company in Europe and the second biggest carmaker in the world has exceeded expectations when it comes to its financial results for the third-quarter.

The company managed to secure a higher than expected operating profit during the July to September period, buoyed by European and Chinese demand for the premium and luxury Audi and Porsche brands. Deliveries at Audi rose 7.2% to 429,250 vehicles and at Porsche jumped 25% to 47,800 autos.

VW AG released a statement, saying that its earnings surged 16% to 3.23 billion euros during the quarter, exceeding even the highest forecast (3.09 billion euros) of analysts polled by Reuters. The German firm managed to ride the wave of the recovery in core European markets, and the automaker has reiterated its goal of achieving an operational profit margin of 5.5 to 6.5% for 2014, in line with last year’s 5.9%. VW added that quarterly revenue totaled 48.9 billion euro, rising 4.1% from the year-ago period. The company stood by its guidance that full-year revenue would be somewhere in between plus or minus 3% of 2013’s record achievement of 197 billion euros. The group vehicle sales during the quarter stood at a record 2.43 million units, up 4.1% as rising demand in China and Europe managed to overcome weakening results in the American regions.

Via Reuters