Volkswagen Net Profit Falls Sharply on Diesel Charges

By Max Bernhard Features Dow Jones Newswires

Volkswagen AG (VOW.XE) reported Friday a steep drop in third-quarter net profit, hit by costs related to its diesel emissions scandal.

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Volkswagen said net profit fell to 1.06 billion euros ($1.25 billion), down from EUR2.28 billion for the same period in the previous year. Revenue rose 5.8% to EUR55.0 billion, up from EUR52.00 billion in the year-earlier period.

Operating profit before special items rose 15% to EUR4.32 billion, up from EUR3.75 billion a year ago.

The German auto maker took charges of EUR2.6 billion in connection with diesel emissions issues.

Chief Financial Officer Frank Witter said he was optimistic about the full year but the effects of the company's diesel scandal weren't over.

Mr. Witter said "the diesel issue is nowhere near an end and will continue to necessitate great efforts throughout the entire group."

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The company raised its operating margin guidance for the full year, saying it expects it to be slightly above the previously expected 6% to 7% range. Volkswagen also confirmed its revenue guidance for 2017.

Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

October 27, 2017 03:58 ET (07:58 GMT)