Volkswagen says commodity markets still uncertain after Q3 hedge hit

Recasts opening paragraph, adds details of results, background

BERLIN, Oct 26 (Reuters) - Europe's largest automaker Volkswagen VOWG_p.DE on Thursday warned the outlook for commodity markets remained uncertain after confirming it took a major hit to its third-quarter profit from raw materials hedges.

Like many other industrial firms, automakers hedge against commodity price swings, potentially leading to non-cash gains or losses, usually at the end of each quarter.

This led to a 2.5 billion euro ($2.64 billion) non-cash loss in the third quarter that it will be unable to offset by the end of the year.

"The further development of the commodity markets remains unpredictable," Volkswagen said.

Volkswagen on Thursday confirmed it posted 78.8 billion euros in third-quarter sales and a 14% rise in operating profit to 4.9 billion euros.

The company said it still expected to deliver between 9 million and 9.5 million vehicles to customers this year, and for group sales revenue to be 10% to 15% higher than in 2022.

($1 = 0.9486 euros)

(Reporting by Victoria Waldersee and Nick Carey; Editing by Rachel More and Jamie Freed)