By Rachel More
BERLIN (Reuters) -Volkswagen made a 1.3-billion-euro ($1.52 billion) operating loss in the third quarter, hit by billions of euros in costs from U.S. tariffs and a costly strategy reversal at its subsidiary Porsche, the company said on Thursday.
The result, down from a 2.8-billion-euro operating profit for the group a year earlier, was less severe than the 1.7-billion-euro loss forecast by analysts in a poll by Visible Alpha.
Overall, tariffs as well as costs and writedowns relating to a product overhaul at Porsche led to 7.5 billion euros in charges for Volkswagen in the January-to-September period , while the transition to EVs also weighed on profitability, it said.
Volkswagen is under pressure to adapt to higher U.S. import tariffs which are expected to cost the group up to 5 billion euros this year.
“Our focus will be – amongst others – on the targeted use of our scale and exploiting synergies within the group even more effectively,” CFO Arno Antlitz said.
The company maintained its guidance on Thursday, forecasting a group operating margin this year in the range of 2-3% with revenues expected around the prior-year level.
Europe’s top carmaker has had to trim its outlook three times this year, firstly to absorb the impact of U.S. President Donald Trump’s trade war and more recently following the course correction at Porsche, which also slid deep into the red in the third quarter.
Volkswagen CEO Oliver Blume also serves as CEO of Porsche but will hand over the reins there at the turn of the year, keeping his job at the helm of the parent company only.
Investors had increasingly called into question his ability to lead the two companies simultaneously at a time of major challenges for both.
($1 = 0.8575 euros)
(Reporting by Rachel More; Editing by Kirsti Knolle and Kim Coghill)
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