VOLKSWAGEN AG said yesterday its third-quarter net profit rose 28 percent on improved sales in emerging markets and stuck to its forecast of beating last year's sales.
The Wolfsburg-based company said its net profit from July to September rose to 1.2 billion euros (US$1.6 billion) compared with 947 million euros last year.
The increase was attributed to improved sales in emerging markets such as China, Russia and India which had offset slackening demand in Europe and the United States. Sales for the third quarter rose 11 percent to 29 billion euros, compared with 26 billion euros a year ago.
"Volkswagen has performed well so far in a difficult environment," Chief Executive Martin Winterkorn said in a statement. "With its young and environmentally friendly model range, flexible production, solid finances and an outstanding team, the group's foundations are sound."
Volkswagen's nine-month profit rose 28.5 percent to 3.7 billion euros from January to September compared with 2.9 billion euros a year ago. Total sales rose 5.5 percent in the first nine months to 85.4 billion euros from 81 billion euros in the year ago period.
For the current year, Volkswagen said it continues to expect deliveries, sales revenue and operating profit will exceed the previous year's figures. The company sold 6.2 million cars in 2007 - helping to push 2007 revenue up almost 4 percent to 108.9 billion euros compared with 104.8 billion euros in 2006.
"We are confirming our forecast for 2008, despite the dramatic deterioration in global economic conditions and the automotive industry environment in recent months", Chief Financial Officer Hans Dieter Poetsch said.
Shares of Volkswagen were up 12 percent to 577 euros (US$758.18) in Frankfurt afternoon trading.
Volkswagen's share price rocketed to a high of 1,005 euros on Tuesday after Stuttgart-based Porsche Automobil Holding SE - already VW's largest shareholder - disclosed it had bought options to increase its ownership to 75 percent, building upon its previous ownership of 42.6 percent in common stock.
That sent investors who bet VW stock would fall in price scrambling to come up with shares that they needed to cover their positions - and the shares went skyward.