Volkswagen, Europe’s biggest carmaker, succeeded in generating a second successive quarterly profit in spite of slumping demand in most of the world’s big vehicle markets.

Net income in the three months to the end of September fell from €1.1bn ($1.62bn) a year ago to €161m, putting VW on course to close 2009 with a profit. But the carmaker confirmed that annual sales revenue would be lower than in 2008 after the decline in revenue continued during the quarter, leaving sales in the year to date almost 10 per cent lower than in the same period last year at €77.2bn.