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Volkswagen Group Q3 Results Down 86%

Germany's largest automaker is struggling with profitability.

by on Oct.29, 2009

Head of Group Design Walter de Silva, left, describes his design philosophy of “Simplicity and character, esthetics and precision” to Dr. Martin Winterkorn, Chairman of Volkswagen Board of Management, right.

Walter de Silva, left, describes his design philosophy of Simplicity to Dr. Martin Winterkorn, Chairman of Volkswagen Board of Management.

Volkswagen Group AG reported a third-quarter after tax profit decline of 86% compared to the year earlier period, as vehicle prices dropped and revenue fell 10%. Net income was €172 million ($255 million), or 43 cents a share, compared €1.21 billion or €3.02 a share a year earlier.

The largest automaker in Europe reported an operating profit of €1.5 billion in the first nine months of this year compared to January – September 2008 profits of €4.9 billion. For Q3, profit was €1.61 million, compared to €1.16 billion a year earlier.

As of September, the Automotive Division’s net cash flow improved to €5.1 billion compared to -€0.1 billion in the year earlier period.

“The Volkswagen Group is holding its own extremely well despite the adverse conditions. While the global market is contracting by 12%, we are recording stable delivery levels. This proves that – even in difficult times – we are well positioned with our multi-brand strategy,” said Dr. Martin Winterkorn, Chairman of Volkswagen Board of Management.

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