VW Falls After Cutting Forecast on  €2.5 Billion Hedging Loss,  Costs

  • Mass-market brands costs increase despite efficiency work
  • Carmaker late Friday outlines third-quarter falling short

New VW automobiles at the Volkswagen Autoeuropa manufacturing plant south of Lisbon, Portugal.

Photographer: Zed Jameson/Bloomberg
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Volkswagen AG shares declined after outlining weaker-than-expected third-quarter earnings and hedging losses.

Europe’s biggest carmaker now sees operating return on sales for the year as low as 7%, from at least 7.5%, it said late Friday in a preliminary quarterly release. VW is due on Thursday to report full results for the three months through September.