VW lowers 2019 outlook for vehicle deliveries as demand cools
FRANKFURT (Reuters) – Volkswagen (VOWG_p.DE) lowered its full-year outlook for vehicle deliveries, warning of slowing demand even as nine-month adjusted operating profit rose 11.2% thanks to sports utility vehicle sales and a jump in demand for Skoda and Porsche cars.
Nine-month adjusted operating profit rose to 14.8 billion euros, up from 13.3 billion euros, the carmaker said on Wednesday.
VW said a slowdown in global demand would result in 2019 Volkswagen Group vehicle deliveries being in line with year-earlier figures, adjusting its earlier forecast, according to which they would rise slightly.
“Despite the gain in market share, the Volkswagen Group anticipates that vehicle markets will contract faster than previously anticipated in many regions of the world,” the carmaker said.
Earlier this week Ford cut its forecast for operating profit, blaming a slowdown in demand in China and other headwinds.
A rise in demand for higher-margin Tiguan and Touareg models helped to offset an overall drop in sales of the VW brand, while Porsche and Skoda saw deliveries jump 8% and 15.3% respectively.
Volkswagen said special items from legal risks, caused by its 2015 diesel emissions cheating scandal, had fallen to 1.3 billion euros from 2.4 billion euros in the year-earlier period.
Reporting by Edward Taylor, editing by Riham Alkousaa and Michelle Martin