Operating profit at the VW namesake brand dropped to 363 million euros ($396 million) from 801 million a year earlier, VW said on Thursday, or just 1.5 percent of sales. The figure was well below a consensus forecast of 462 million euros in a Reuters poll of analysts. "The results reinforce the need for cost cuts at the VW brand," said Commerzbank analyst Sascha Gommel, who has a "hold" recommendation on the stock. In the seasonally slow July-to-September period, business at the VW brand was marred by suppliers halting parts deliveries to protest against the cancellation of a contract by VW, curbing output of the top-selling Golf and Passat models at the Wolfsburg and Emden plants by about 20,000 units. The VW group raised its guidance for profit and revenue this year after posting higher-than-expected quarterly earnings of 3.3 billion euros, adjusted for special items, reflecting strong gains at premium brand Porsche.

Source: Standard Digital October 27, 2016 08:49 UTC