Volkswagen AG (VWAGY)

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Volkswagen Is Expected to Post Quarterly LossAnalysts say impact of emissions scandal may push auto maker into red

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Matthias Müller, chief executive officer of Volkswagen, said recently the company has to go through a rough patch before its profit returns to levels enjoyed before the emissions cheating scandal. PHOTO: KRISZTIAN BOCSI/BLOOMBERG NEWS

By 

WILLIAM BOSTON and

 

MURAT SAHIN

Updated Oct. 27, 2015 4:16 a.m. ET

BERLIN—Amid Volkswagen AG’s crisis over cheating on emissions testing, analysts have slashed their earnings outlook for the auto maker and expect it to report a loss for the third quarter.

Volkswagen is set to present results for the three months ended in September on Wednesday. The company has taken a €6.5 billion ($7.2 billion) charge against third-quarter earnings to pay for a global recall of as many as 11 million vehicles.

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That will push the company into the red, according to a consensus of analysts polled by The Wall Street Journal. Their average estimate calls for Volkswagen to swing to a third-quarter loss of €1.6 billion from a net profit of €2.9 billion last year.