© Stocksak. FILE PHOTO – A Volkswagen logo can be seen on a car manufactured by the German automaker in Sydney, Australia, on October 8, 2015. REUTERS/David Gray/File Photo
BERLIN (Stocksak). Volkswagen reported earnings in the third quarter of 4.3 billion euros ($4.29 trillion) with a margin of 6%. The earnings margin was weighed down by 1.6billion in one-off effects due to suspending activities in Russia, and listing Porsche AG.
It also suffered a 1.9 million euro non-cash impairment cost as a result of the write down of its investment in Argo AI. This self-driving startup was jointly owned by Ford Motor (NYSE 🙂 Co until Wednesday, when both companies shifted spending from the business.
Volkswagen (ETR) still believes it will achieve a 7-8.5% earnings margin for the year. This is due to a strong recovery on the Chinese market and the easing of supply issues.
However, Europe’s largest carmaker now expects deliveries will be about the same as last year. Previously, they had forecast a 5-10% increase, but this month, the company reported that deliveries had fallen 12.9% in the first nine-months.
($1 = 1.0022 euros)