German automaker Volkswagen (ETR:VOWG_p) has reported a Q3 after-tax profit of 4.35 billion euros, beating FactSet's estimate of 3.85 billion euros and outperforming last year's Q3 result of 2.135 billion euros. This comes in spite of a 2.8% production drop to 2.2 million vehicles, a consequence of floods at its Slovenia plant and increased supplier costs.
UBS analysts have suggested that these conditions may also indicate a softening demand for Volkswagen's products. However, the company has managed to increase its sales volumes and revenues, despite these challenges.
The company's CFO, Arno Antlitz, confirmed a delay in a cost-saving initiative that aims to save 10 billion euros, following a report by Reuters. Antlitz downplayed the impact of this delay on the long-term project, a viewpoint that aligns with Stifel analysts who consider the program critical to Volkswagen's investment case.
On Monday, preliminary figures indicating a 7% drop in operating profit to 16.24 billion euros for the first nine months were confirmed. Despite the increase in sales volumes and revenues, Antlitz expressed disappointment over Q3 profitability not reaching their ambitious targets.
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