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Volkswagen 9M Profit Climbs, Backs FY19 Sales View; Cuts Delivery Outlook

German car maker Volkswagen Group (VKW.L,VLKAF.PK,VOW.BE) reported Wednesday that its profit before tax for the nine-month period grew 16.9 percent to 14.6 billion euros from last year's 12.5 billion euros.

Operating profit improved 24.5 percent to 13.5 billion euros from last year's 10.9 billion euros, bringing the operating return on sales up to 7.3 percent from 6.2 percent last year.

Adjusted operating profit increased 11.2 percent to 14.8 billion euros. The operating return on sales before special items stood at 7.9 percent, compared to 7.6 percent a year ago.

Group sales revenue increased 6.9 percent to 186.6 billion euros from 174.6 billion euros a year ago.

The Volkswagen Passenger Cars brand sold 2.8 million vehicles in the first nine months of this year, same as last year. Sales revenue increased 4.7 percent year-on-year to 65.4 billion euros.

The Audi brand sold 900 thousand vehicles, down from 1,107 thousand vehicles last year. Sales revenue also declined from last year to 41.3 billion euros.

Looking ahead for fiscal 2019, the company said it continues to expect sales revenue to exceed the prior-year figure by as much as 5 percent. Adjusted operating margin of between 6.5 and 7.5 percent is expected.

Including special items, the company now projects an operating return on sales at the lower end of the previously announced range.

Volkswagen now expects deliveries in 2019 to be on a level with the previous year. The company earlier expected a slight increase in deliveries.

The company now anticipates that vehicle markets will contract faster than previously anticipated in many regions of the world.

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