Volkswagen Posts Net Profits of €3.8 Billion for Q3 2019

Published October 31st, 2019 - 09:00 GMT
Volkswagen continues to deal with the financial fallout of diesel emissions cheating.
Volkswagen continues to deal with the financial fallout of diesel emissions cheating. (Shutterstock)
German carmaker Volkswagen yesterday posted net profits of €3.8bn for the third quarter, a significant rise over the €2.7bn net profit it reported in the same period of last year.

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Volkswagen continues to deal with the financial fallout of diesel emissions cheating, but legal costs associated with the scandal fell to €275mn in the third quarter compared to €800mn in the same period of 2018.

The carmaker’s chief financial officer, Frank Witter, said the results showed that Volkswagen was doing well despite “challenging conditions” both within the car industry and the global economy.

He pointed to the sale of SUV models including T-Roc, Tiguan, Touareg and Atlas as contributing to the positive third-quarter results.

General Electric

General Electric Co posted adjusted profits yesterday that beat analysts’ estimates and wowed investors by promising to deliver $1bn more cash this year than it had previously forecast, sending its shares sharply higher.

The Boston-based conglomerate made the gains despite flat revenue and a $1.3bn net loss, when one-time charges were included.

But improvement in its aircraft and healthcare businesses, and “stabilization” at its power unit signalled “progress in the transformation of GE,” said chief executive officer Larry Culp, who has called GE’s planned turnaround from a disastrous 2018 “a game of inches.”
GE said it now expects full-year industrial free cash flow to be between $0 and $2bn, up from its earlier forecast of negative $1bn to positive $1bn.

GlaxoSmithKline

GlaxoSmithKline yesterday raised its annual profit forecast for the second time this year as sales of its shingles vaccine beat expectations and older medicines, including HIV treatments, continued to sell well.

The British drugmaker’s shares rose as much as 3% to a more than a six-year high after the company said it now expected profit to be roughly flat at constant currency for the year, compared with a previous forecast of a fall of 3% to 5%.

CEO Emma Walmsley has embarked on a plan to rejuvenate GSK, which has included the spin off or sale of a number of businesses since she took over in 2017.

The company has formed a joint venture with Pfizer’s consumer health division for over the counter products, which include Sensodyne toothpaste and Panadol painkillers.

Sales of the vaccine, launched in 2017, jumped 76% to €535mn ($689.9mn), zooming past analysts’ estimate of £464mn, driven by sales in the US where doctors are recommending immunisation more often for patients.

Credit Suisse

Credit Suisse said yesterday it more than doubled its third quarter net profit, largely due to its wealth management activities, and despite losses in its investment bank unit.
Switzerland’s second largest bank said its net profit soared 108% in the third quarter year-on-year to 881mn Swiss francs ($888mn, €798mn) despite a “challenging environment”.
Net revenue meanwhile swelled nine % to 5.3bn Swiss francs, it said.

The results beat the expectations of analysts polled by the AWP financial news agency, who on average anticipated net profits of 776mn francs on revenues of 5.1bn.

PetroChina

PetroChina Co, Asia’s largest oil and gas producer, reported a sharp fall in third-quarter profit yesterday, dragged down by weaker global energy prices and slowing growth in its domestic gas market. Net profit for the July to September quarter was 8.83bn yuan ($1.25bn), down 58.4% compared with the same period a year ago and the weakest quarterly results this year, according to a company filing with Hong Kong stock exchange.

For the first nine months of 2019, net income fell 23.4% from a year earlier to 37.25bn yuan, the state firm said.
“Amid an increasingly complex and rigid global economic and trade environment... international oil prices have fallen over last year,” the company said. Revenue for the quarter edged up 1.8% from a year ago to 618.14bn yuan.
For the first nine months, revenue rose 5.1% to 1.81tn yuan.

Sony

Japan’s Sony said yesterday half-year net profit fell nearly 15%, but it upgraded its annual forecast on solid growth in its image-sensor and music sectors. The PlayStation manufacturer said net profit dropped 14.9% to ¥340bn ($3.12bn) for April-September, and tipped annual net profits of ¥540bn, compared with an earlier €500bn forecast.

The company said it saw sales jump in the image-sensor sector, thanks to a growth in demand due to mobile phones.

“We think the demand will continue to grow also for the next fiscal year with the increase of smart phones with multiple lenses and large-sized sensors,” CFO Hiroki Totoki said.
Sony’s half-year sales dipped 2.1% to ¥4.04tn while operating profit jumped 17.3% to ¥510bn.

Total

French oil major Total reported a smaller than expected third-quarter profit fall as record production growth countered crude and gas price declines that sent profit down 24% year on year.

Output rose 8.4% year on year to more than 3mn barrels of oil equivalent per day, with the company saying it is on track to hit 9% output growth this year thanks to new projects and ramp-ups in Russia, Angola, Nigeria, Norway and Britain.

“The group continues to achieve solid results despite a third-quarter environment...marked by an 18% decrease in the Brent price to $62 per barrel and gas prices that fell by about 55% in Europe and Asia,” CEO Patrick Pouyanne said in a statement.

Debt-adjusted cash flow fell 2% to $7.4bn while adjusted net profit slumped by 24% to $3.02bn.

Standard Chartered

Standard Chartered flagged risks yesterday to its key returns target citing slowing global economic growth, trade tensions and protests in its biggest market of Hong Kong, after posting a forecast-beating 16% growth in quarterly profit.

The London-headquartered bank had set a goal to double its returns and dividends in three years by cutting $700mn in costs and boosting income, as part of a broader, second three-year turnaround plan.

The first of those in 2015-2018 under chief executive bill Winters focused on repairing a balance sheet ravaged by ill-advised lending in Asia, improving the bank’s internal controls, reducing costs, and shedding unwanted businesses.

StanChart’s pretax profit for the three months ended September 30 rose to $1.24bn from $1.07bn in the same period a year ago, above the $1bn average of analysts’ forecasts compiled by the bank.

Deutsche Bank

Germany’s biggest lender Deutsche Bank reported yesterday a heavy net loss in the third quarter, as the costs of its latest phase of restructuring weigh on the bottom line.
The group lost €859mn ($954mn) in July-September, down from a profit of 211mn last year.

The bank also saw a pre-tax loss of €687mn, compared with a gain of €506mn in 2018.
And revenues fell 15%, to €5.3bn.

But chief executive Christian Sewing highlighted that the so-called “core bank” of four businesses Deutsche plans to maintain into the future was profitable.
Among those units, the former flagship investment bank remained the lender’s problem child, with falling revenues and profits as it closed share trading activities.

Airbus

Airbus cut yesterday its forecast for the number of planes it will deliver this year as it finds it difficult to meet ambitious targets to speed up production, while profits held steady in the third quarter.
The European plane manufacturer said in a statement it now plans on delivering around 860 commercial aircraft in 2019, up from 800 last year, but down from earlier estimates of 880 to 890 jets.

As Airbus gets paid when it delivers aircraft to airlines, the figure is keenly watched by investors and analysts.
Production of aircraft has risen this year, with Airbus delivering 571 in the first nine months of this year compared to 503 in the same period last year, but the firm had ambitious plans to put more of its top-selling next-generation jets into the hands of clients.
“We are focused on the A320neo ramp-up and improving the industrial flow while managing the higher level of complexity on the A321 ACF in particular,” said Airbus CEO Guillaume Faury.

Net profit for the third quarter edged 3% higher to €989mn ($1.01bn). But over the first nine months of the year, net profits climbed 50% to €2.2bn.
Net orders for the first nine months of the year stood at 127, compared to 256 last year.


© Gulf Times Newspaper 2022

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