VW Calms Investors Ahead of Earnings - Shares on the Rise

Positive statements from Volkswagen regarding its business outlook are boosting the automaker's shares.

On Tuesday, VW shares climbed as much as 2.3 percent, outperforming all other DAX-listed stocks. In a conference call held ahead of the quarterly earnings release, the group, according to analysts, eased concerns about US tariffs and weakness in its luxury brands. "The company appeared satisfied with current market expectations for the quarter," explained analyst Pal Skirta from Bank Metzler. Cost reductions at VW's core brand also had a positive impact, once one-off effects were excluded. This, Skirta noted, "reflects the gradual unfolding of Volkswagen's self-help story."

Analysts at Jefferies echoed this sentiment, describing VW's message as "overall reassuring." Profitability in the third quarter is expected to be within Volkswagen's guidance, with an adjusted margin of 4.3 percent. The core VW brand is able to offset the weaknesses of Audi and Porsche, which are currently not fulfilling their roles as main profit drivers. Additionally, the burden from US import tariffs is now reported to be lower than the EUR1.2 billion indicated in the summer.

(Reporting by Stefanie Geiger, Ilona Wissenbach, Rachel More; edited by Olaf Brenner. For inquiries, please contact our newsroom at [e-mail] (for politics and economy) or [e-mail] (for companies and markets)