Volkswagen's profit surges

Operating profit from the Volkswagen Group leapt beyond even its own expectations in the third quarter of the 2014, it reported yesterday (Oct 30).

Driven by Chinese and European sales of the higher-profit Audi and Porsche ranges, the VW Group lifted its profit 16 percent to €3.23 billion for the third quarter.

Europe’s largest car maker, spanning 12 brands, VW's share price rose by up to 4.8 per cent at their peak yesterday on the back of the news, turning around a 17 per cent slide in its share price during 2014. It is still refusing to lift its full year profit estimate, though.

“We have turned in a solid performance in the year to date, however we must continue to focus on laying the foundations now that will enable us to respond to challenges in the industry,” VW Group CEO Martin Winterkorn stated.

The VW Group’s third-quarter earnings themselves were up by 4.1 per cent, with 2.43 million cars sold around the world, which is right in line with Volkswagen’s 10 million-car target for the full year.

Porsche and Audi accounted for an astonishing two-thirds of VW Group earnings (before interest and tax). Audi sales jumped 7.2 per cent to 429,250 cars in the third quarter, while Porsche volumes jumped by 25 per cent to 47,800 cars on the back of the new Macan mid-sized SUV.

Audi rode its sales increase to post a €1.16 billion profit for the third quarter of the year. So far this year, its sales have risen 10 percent to 1.3 million cars, while it has a nine-month profit of €3.8 billion.

Porsche sales have reached 135,600, a jump of 13 per cent.

Another surging VW Group brand is Skoda, with the Czech outpost lifting its third-quarter profit 77 per cent to €226 million on the back of the new Octavia, the facelifted Yeti and the Rapid.

It's no fleeting surge, though, because Skoda’s nine-month profit rose to €651 million, a lift of 76 per cent. Its sales are up 13 per cent to 774,100 cars in the first nine months of the year.