Volkswagen lifts profit target

 

Volkswagen lifted its profit target for the year on Friday after cost cuts at its core autos division helped it outstrip third quarter earnings forecasts. The world’s largest carmaker is spending billions of euros to reposition itself two years after a diesel emissions scandal, focusing on electrification of its mass-market and luxury brands while developing what it calls “digital mobility services” for those who do not want to own a vehicle.
“Earnings in the first nine months make us quite optimistic about the year as a whole,” Volkswagen finance chief Frank Witter said. “This is a strong foundation we can build on.”
Quarterly group earnings before interest and taxes (EBIT) before special items jumped 15 percent to 4.31 billion euros ($5.01 billion) from 3.75 billion a year ago, Volkswagen (VW) said on Friday. That beat even the highest estimate of 4.17 billion euros in a Reuters poll of banks and brokerages. VW shares rose 1.9 percent to an eight-month high at 148.20 euros by 0756 GMT, making them the biggest risers on the STOXX Europe 600 automobiles index, which was up 1 percent.