VW net profit rises 58 pct on accounting gain
FRANKFURT, Germany -- German automaker Volkswagen AG says net profit rose 58 percent in the third quarter because of an accounting boost from its takeover of Porsche.
The company's operating profits fell however. Volkswagen said it was sticking to its earnings forecast despite what it called "growing headwinds" in the business environment.
Net profit rose to (EURO)11.38 billion ($14.80 billion) from (EURO)7.14 billion in the same quarter last year. Sales rose 27 percent to (EURO)48.84 billion.
Net profits were boosted by financial effect from incorporating Porsche during the quarter.
Operating earnings _ excluding the effects of the merger _ fell 19 percent to (EURO)2.34 billion from (EURO)2.89 billion.
The company has strong sales in the U.S. and China but saw tougher markets in southern Europe due to the eurozone debt crisis.