Mexican Media Brands
Diesel Payments Cut VW Group’s Net Earnings 51%
Volkswagen AG says the cost of repairing or replacing diesels in the U.S. slashed its third-quarter net earnings to €1.1 billion ($1.3 billion) from €2.3 billion in the same period last year.
#economics
Share
Volkswagen AG says the cost of repairing or replacing diesels in the U.S. slashed its third-quarter net earnings to €1.1 billion ($1.3 billion) from €2.3 billion in the same period last year.
But when those charges are ignored, pretax earnings in July-September jumped 15% to €4.3 billion ($5 billion), beating forecasts. Analysts are gushing over the company’s rebound from its two-year old diesel emission cheating scandal.
Sales volume in the third quarter climbed 6% to 2.65 million vehicles, and revenue rose 6% to €55 billion ($63.8 billion) in July-September. Through the first nine months of 2017, group operating profit before special items advanced 17% to €13.2 billion ($15.3 billion).
Those results were tempered by another €2.6 billion charge booked in the third quarter for diesel remediation in the U.S. for about 555,000 diesels VW had rigged to evade emission laws. Such charges now total €25.1 billion ($29.1 billion) and include a payout so far this year of €14.5 billion ($16.8 billion).
When special charges are ignored, operating profits for VW brand operations doubled to €2.5 billion through the first nine months of 2017. Operating profits for the group’s SEAT and Skoda brands jumped 12% and 28%, respectively. Operating profits rose 4% for Porsche but were flat for Audi.
VW reiterates that it expects its full-year revenue will grow more than 4% to surpass last year’s €217 billion. But the group now forecasts its operating return on sales in 2017 will be “moderately higher” than the previous guidance of 6%-7%.
RELATED CONTENT
-
Multiple Choices for Light, High-Performance Chassis
How carbon fiber is utilized is as different as the vehicles on which it is used. From full carbon tubs to partial panels to welded steel tube sandwich structures, the only limitation is imagination.
-
Robotic Exoskeleton Amplifies Human Strength
The Sarcos Guardian XO Max full-body, all-electric exoskeleton features strength amplification of up to 20 to 1, making 200 pounds—the suit’s upper limit—feel like 10 pounds for the user.
-
Jeeps Modified for Moab
On Easter morning in Moab, Utah, when the population of that exceedingly-hard-to-get-to town in one of the most beautiful settings on Earth has more than doubled, some people won’t be hunting for Easter eggs, but will be trying to get a good look at one of the vehicles six that Jeep has prepared for real-life, fast-feedback from the assembled at the annual Easter Jeep Safari.
