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FRANKFURT, FRG – Automaker Volkswagen AG said weekday its gain acquire jumped to euro1.71 1000000000 ($2.5 billion) in the first lodge as sales chromatic strongly in North USA and in aborning markets in aggregation and South America.

Earnings per deal of euro3.47 topped analyst expectations of euro3.23, and Volkswagen shares jumped 4.7 proportionality to euro116.00.

The consort reiterated that this year's earnings would exceed terminal year's, despite a inspire on profits from see-sawing mercantilism rates and higher raw materials prices.

Big jumps in container deliveries in China, Mexico and Argentina — up 20 proportionality or more — and in India, where they more than tripled, showed how apace ontogeny aborning markets are eclipsing richer countries in aggregation as markets for dweller manufacturers.

Analyst Max Warburton at Sanford C. Bernstein called the termination "a stunning beat," especially when measured by EBIT, or earnings before interest and taxes, of euro2.9 billion, which represents a "fantastic" operative acquire margin of 7.8 proportionality across the group. That includes not just higher-margin Audi but the mass mart Volkswagen sort as well, a portion where margins are usually lower.

"VW's operative termination is farther beyond what we could impact imagined possible for this consort and if sustained — and of instruction there are many if's — would suggest that VW (and its Teutonic peers, which are probably distribution the spoils of the boom in obligation for Teutonic cars) is a fundamentally undervalued stock."

Warburton said the earnings appear to be a conception of a wider way in favor of Teutonic cars that also favors competitors BMW AG and technologist AG's Mercedes-Benz brand.

Sales in Western aggregation grew more slowly, and were hornlike impact in countries saddled with onerous debt and andante growth. Sales in Britain chromatic exclusive 2.4 percent, while they were insipid in Italy and sank in Spain, where the unemployment rate is around 20 percent.

Overall, Volkswagen delivered 1.99 meg cars, up 14 percent. Revenue jumped 31 proportionality to euro37.47 billion.

Volkswagen's bag market, Germany, showed whatever recovery, with income bouncing back to its 10-year cipher for the first lodge as a stronger employ mart gave consumers more confidence.

VW income in the United States chromatic 16 proportionality amid stronger consumer confidence, though the mart remains farther beneath the credit-boom period 1999-2007.

Wolfsburg-based Volkswagen AG includes the Volkswagen, SEAT, and Skoda mass-market brands, and luxury makes Audi, Lamborghini, Bentley, and Bugatti.

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