Volkswagen AG (ADR)(OTCMKTS:VLKAY) was a notable mover during the trading session. The stock plunged by close to 1% on the back of high volumes. The stock currently is in strong downtrend and has been forming lower tops and lower bottoms pointing towards the fact that bears are using every rally in the stock as a selling opportunity. The stock currently trades below all daily moving averages. The momentum oscillators continue to remain under pressure and show no signs of a reversal. Traders believe the stock could head to levels of $22.40 while continue facing resistance near the $26.76 levels.
Amid difficult time due to recent legal issues, Volkswagen AG (ADR)(OTCMKTS:VLKAY) announced financial results. As per the reports, the biggest highlight of these results was its sales revenue that touched a whopping EUR 160.3 billion mark during the first nine months of 2015, 8.5% higher than the last year’s sales revenues.
When it comes to operating profit, Volkswagen managed to post a total of EUR 10.2 billion operating profit before special items. If the special items are removed, the remainder operating profit figure was EUR 3.3 billion. The operating return on sales before special items accounted for 6.4% during the first nine months. Due to the diesel issue, it had to pay additional charges of EUR 6.7 billion in the 3Q2015, which affected company’s financial performance to some extent.
Profit after tax for the same duration was EUR 4.0 billion. Volkswagen adjusted its full earnings forecast based on these numbers.
The senior management team of Volkswagen is delighted to announce these results and hopes that they will continue to bolster in the coming months as well. According to Matthias Müller, Chairman – Board of Management, Volkswagen Aktiengesellschaft, despite what happened over the past few months, Volkswagen managed to post such amazing results. It couldn’t have been possible if the company wasn’t true to its objective – serving people to the best of the efforts.
Müller further added that many of company’s customers have lost their trust due to unexpected events, and Volkswagen will do everything possible to win that trust back as soon as possible.
Volkswagen hasn’t included the proceeds from its Chinese joint ventures in the operating activities as they comprised of equity transactions rather than cash and cash equivalent method. The entire management team, including Müller is confident that the financial performance of the company will become better with the passage of time.