Volkswagen suffers loss, lowers forecast due to scandal

FILE - In this Sept. 30, 2015 file photo new cars of Volkswagen AG stand at the car terminal in Emden, Germany. Volkswagen is reporting a loss of 1.67 billion euros (US dollar 1.83 billion) in the third quarter, Wednesday, Oct. 28, 2015, as earnings took a hit from 6.7 billion euros in set-asides for recalls and fines connected to cars rigged to evade U.S. diesel emissions testing. (Ingo Wagner/dpa via AP, file) FILE - In this Sept. 30, 2015 file photo new cars of Volkswagen AG stand at the car terminal in Emden, Germany. Volkswagen is reporting a loss of 1.67 billion euros (US dollar 1.83 billion) in the third quarter, Wednesday, Oct. 28, 2015, as earnings took a hit from 6.7 billion euros in set-asides for recalls and fines connected to cars rigged to evade U.S. diesel emissions testing. (Ingo Wagner/dpa via AP, file)

By Associated Press October 28, 2015 2 min read

FRANKFURT, Germany (AP) – Volkswagen reported a loss of 1.67 billion euros ($1.83 billion) for the third quarter as the company set aside 6.7 billion euros to pay for recalling and fixing cars that were rigged to evade U.S. diesel emissions tests.

The company warned Wednesday that operating profit would be “down significantly” as a result of the scandal.

But it stayed with its prediction that unit sales would be on a level with last year’s record 10.14 million.

Company shares jumped 3.7 percent on the announcement in morning trading in Europe.

Volkswagen AG had already announced the 6.7 billion euros in charges, so market analysts expected a loss for the quarter. The result was in fact not as bad as analysts’ expectations for a loss of 2.11 billion euros, as compiled by financial data provider FactSet. Sales revenue rose 5.3 percent to 51.5 billion euros.