FRANKFURT, Germany: Volkswagen saw net profit more than double in the third quarter even as sales fell due to delays certifying vehicles for new emissions tests.
Profit rose to €2.76 billion ($3.14 billion) from an adjusted figure of €1.07 billion in the same period last year. Sales revenue rose 0.9 percent to €55.2 billion, the company said Tuesday.
Vehicles sales, however, fell 3.6 percent in the quarter, to 2.54 million, as the company failed to get vehicles certified in time for new European emissions tests intended to more closely reflect cars’ pollution levels.
The company nonetheless reaffirmed its sales outlook for the full year and Volkswagen shares rose 3 percent in morning trading, to €146.70.
The new tests took effect September 1 and follow increased scrutiny of diesel emissions after Volkswagen’s 2015 scandal in which it was caught using software to turn emissions controls off when vehicles were not being tested. The result was emissions that were much higher in real-life driving. Other automakers were subsequently found to be using regulatory loopholes that permitted disabling of emissions controls at certain temperatures.
Volkswagen has paid more than 28 billion euros ($32 billion) in fines and penalties, two executives went to prison in the US and former CEO Martin Winterkorn was charged by US authorities, although he cannot be extradited.
Volkswagen said it had fewer one-time deductions to earnings in the third quarter. There were €800 million in one-time costs, compared with €2.6 billion in the year-ago quarter.
The company’s Audi division was fined €800 million this month for failing to exercise sufficient oversight to prevent the emissions cheating. The fine does not end investigations against individuals at Audi. Former division head Rupert Stadler was jailed while German prosecutors investigate; a court in Munich on Tuesday ordered his release on bail.
Looking ahead, the company said it was sticking to its earnings and sales forecasts for the year. It said deliveries to customers would “moderately surpass” last year’s record sales of 10.7 million vehicles. That made Volkswagen the biggest carmaker in the world, although the title was disputed by the Renault-Nissan-Mitsubishi alliance, which sold 10.6 million and said Volkswagen was counting trucks as well.
Volkswagen profit rises despite emissions certification woes
Volkswagen profit rises despite emissions certification woes
- The company failed to get vehicles certified in time for new European emissions tests intended to more closely reflect cars’ pollution levels
The Family Office to host global investment summit in Saudi Arabia
RIYADH: The Family Office, one of the Gulf’s leading wealth management firms, will host its exclusive investment summit, “Investing Is a Sea,” from Jan. 29 to 31 on Shura Island along Saudi Arabia’s Red Sea coast.
The event comes as part of the Kingdom’s broader Vision 2030 initiative, reflecting efforts to position Saudi Arabia as a global hub for investment dialogue and strategic economic development.
The summit is designed to offer participants an immersive environment for exploring global investment trends and assessing emerging opportunities and challenges in a rapidly changing financial landscape.
Discussions will cover key themes including shifts in the global economy, the role of private markets in portfolio management, long-term investment strategies, and the transformative impact of artificial intelligence and advanced technologies on investment decision-making and risk management, according to a press release issued on Sunday.
Abdulmohsin Al-Omran, founder and CEO of The Family Office, will deliver the opening remarks, with keynote addresses from Saudi Energy Minister Prince Abdulaziz bin Salman and Prince Turki Al-Faisal, chairman of the King Faisal Center for Research and Islamic Studies.
The press release said the event reflects the firm’s commitment to institutional discipline, selective investment strategies, and long-term planning that anticipates economic cycles.
The summit will bring together prominent international and regional figures, including former UK Treasury Commercial Secretary Lord Jim O’Neill, Mohamed El-Erian, chairman of Gramercy Fund Management, Abdulrahman Al-Rashed, chairman of the editorial board at Al Arabiya, Lebanese Minister of Economy and Trade Dr. Amer Bisat, economist Nouriel Roubini of NYU Stern School of Business, Naim Yazbeck, president of Microsoft Middle East and Africa, John Pagano, CEO of Red Sea Global, Dr. Anne-Marie Imafidon, MBE, co-founder of Stemettes, SRMG CEO Jomana R. Alrashed and other leaders in finance, technology, and investment.
With offices in Bahrain, Dubai, Riyadh, and Kuwait, and through its Zurich-based sister company Petiole Asset Management AG with a presence in New York and Hong Kong, The Family Office has established a reputation for combining institutional rigor with innovative, long-term investment strategies.
The “Investing Is a Sea” summit underscores Saudi Arabia’s growing role as a global center for financial dialogue and strategic investment, reinforcing the Kingdom’s Vision 2030 objective of fostering economic diversification and sustainable development.
