Shares of Volkswagen (ETR: VOW) are trading about 1.5% lower today after the German car giant said it returned to profit in the third quarter.
Yesterday, Volkswagen reported earnings before tax of about 2.4 billion euros after posting a 1 billion euros loss for the first half of the year. Sales fell 19% on an annual basis in the first three quarters of the year, but have managed to recover in the third quarter.
A surge in demand in the last quarter was mainly boosted by customers in China – the biggest market for Volkswagen – as sales rose 3% in the quarter. Overall, VOW reported operating earnings of 3.2 billion euros.
As for the full year, the car giant expected lower revenue compared to a year ago, but still positive, on lower delivery numbers.
“The Volkswagen Group’s business continued to be heavily impacted by the Covid-19 pandemic in first nine months. At the same time, the clear recovery trend in the third quarter shows how robustly our company is positioned,” Frank Witter, member of the Group Board of Management responsible for Finance and IT said.
Volkswagen share price dropped about 1.5% to extend weekly losses to nearly 10% and print the lowest levels recorded in more than five months.
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