Germany’s car and vans giant Volkswagen said Thursday that third-quarter net profit dropped 86% from the previous year, however it still expects to fare better than its rivals and gain market share during the crisis.
“Volkswagen Group is holding its own extremely well despite the adverse conditions,” Chief Executive Martin Winterkorn said in a statement. “At the same time, the trend in the automotive industry means that there is no reason for premature optimism. The business climate remains tough,” he added.
The company reiterated that revenue and vehicle sales this year for all new car and used vans are expected to come in lower than in 2008, but it still expects to post a profit for the full-year.
Volkswagen steered better through the industry gloom than most of its rivals, thanks mainly to a large presence in dynamic markets such as China and Brazil and a relatively small exposure to the troubled U.S. market.
Additionally, Volkswagen was one of the biggest beneficiaries of state-backed scrapping incentive schemes in many major markets, including its German home turf, which sparked demand for its line-up of small and compact cars.
Revenue fell 10% to €26 billion from €28.9 billion as vehicle sales rose by 4.1% to 1.61 million cars and trucks.
Operating profit fell 81% on the year to €278 million in the third quarter.
The company’s Audi AG premium brand continued to be the biggest contributor to the group’s earnings in the first nine months of the year, with operating profit coming in at €1.17 billion compared to €2.06 billion in the same period in 2008.
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