Volkswagen AG returned to revenue within the third quarter as surging Chinese language demand for luxurious vehicles helped offset a 1.1% drop in automobile deliveries as a result of COVID-19 disaster.
The German automaker reiterated it expects to publish a revenue for the total yr, saying that its enterprise “recovered noticeably” within the quarter as gross sales in China of its premium autos, together with Audi and Porsche sportscars, rose 3%.
The corporate additionally benefited from a sequence of cost-cutting measures launched earlier this yr to counter the impression of the pandemic.
“(The fee cuts) had as a lot of an impression because the persevering with enhancements within the state of affairs in key gross sales markets, VW stated.
The automobile marker stated its internet liquidity improved to 24.8 billion euros, up from 18.7 billion on the finish of the second quarter.
Excluding one-time gadgets, the corporate’s third-quarter working revenue was 3.2 billion euros ($3.78 billion), versus 4.8 billion euros a yr earlier.
VW stated the adjusted working return on gross sales in its automotive division fell to five.4% from 7.4% within the year-earlier quarter, however rebounded from minus 5.8% within the second quarter.
The automaker stated whereas its full-year 2020 revenue would nonetheless be “severely decrease” than in 2019, it might nonetheless be in “optimistic territory.”
VW had posted a lack of 1.7 billion euros within the second quarter because it was hit laborious by a drop in demand brought on by the pandemic, which led to restrictions on motion, financial crises and swathes of job losses globally.
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