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Volkswagen's Q3 results driven by Audi, China JVs

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Volkswagen's Q3 results driven by Audi, China JVs

October 27, 2010 11:16 CET

FRANKFURT (Reuters) -- Volkswagen lifted the veil off its mysteriously strong third-quarter results to uncover profitability at its luxury brand Audi that far exceeded market forecasts and booming earnings from its China operations.

Europe's largest carmaker on Wednesday published detailed quarterly results and a full cash flow statement, showing that Audi's quarterly operating margin exceeded 11 percent.

We are well-positioned to achieve the goals laid down in our Strategy 2018," CEO Martin Winterkorn said in a statement.

On Friday, Volkswagen already posted preliminary figures that analysts described as a "blowout". It warned however that business in the current quarter could not keep up with the blistering pace seen in the first nine months.

The group's share of profits from the two Chinese joint ventures proportionate to VW's stakes amounted to 513 million euros ($715.8 million), more than double the 231 million earned a year ago.

Because Volkswagen does not consolidate their results, earnings from the JVs are booked as investment income below the operating profit line and as such were not responsible for Friday's significant earnings beat before interest and tax.

Volkswagen is due to hold a conference call with the media and investment analysts at 1200 GMT.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101027/ANE/310279937/1131#ixzz13ZcPelNY

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