Frankfurt - Shares in Volkswagen AG rose 7.8 per cent Thursday after Europe's biggest carmaker reported a rise in earnings for the first nine months of the year and confirmed the group's 2008 outlook despite the global financial crisis.

Wolfsburg-based Volkswagen said operating profit in the first nine months of the year rose 15 per cent to 4.9 billion euros (6.4 billion dollars) after third-quarter operating profit rose 1.8 per cent to almost 1.49 billion euros.

Thursday's rise in Volkswagen stock to 557.60 euros Thursday was somewhat more orderly that in recent days when news that the group's key shareholder Porsche AG planned to build its stake in VW to 74.1 per cent sent VW's shares soaring pushing them at one point to over 1,000 euros.

Since then Porsche said it was taken steps to stabilize Volkswagen's share price.

VW said that sales revenue climbed by 5.5 per cent to 85.4 billion euros in the nine months to September with worldwide deliveries rising to 4.8 million vehicles with the group saying that its share of the global passenger car market increased to 10.1 per cent.

"Volkswagen has performed well so far in a difficult environment," said VW chief Martin Winterkorn commenting on the results.

"We are confirming our forecast for 2008, despite the dramatic deterioration in global economic conditions and the automotive industry environment in recent months," said VW chief financial officer Hans Dieter Poetsch.

The group's nine-month after tax profit of 3.7 billion euros was 28.5 per cent higher than the carmaker's 2007 full year after tax profit in 2007 with VW benefitting from strong demand in emerging economies.

While the company's core VW brand reported a 37 per cent rise in nine-month operating profit to 1.9 billion euros, its luxury car offshoot Audi posed an increase in operating profit from 1.8 billion euros to 2.1 billion euros.

However, the tough market conditions that have emerged in Spain as a result of the global financial market crisis lead to VW's SEAT unit reporting an operating 30 million euros loss. (dpa)