FRANKFURT, Germany (AP) _ Volkswagen AG shares slumped Tuesday after the automaker said its nine-month net profit failed to grow despite a 10 percent rise in revenue.

Volkswagen reported late yesterday its earnings slipped to 1.502 billion marks, or $ 812 million, from 1.507 billion marks a year earlier.

Analysts expected a slight increase.

Sales rose to 110.1 billion marks, or $59.5 billion, from 99.95 billion marks a year ago.

In early Frankfurt trading, shares of Volkswagen slipped 3.3 percent while the overall Xetra DAX index was down 0.6 percent.

Volkswagen reiterated its net profit for all of 1999 will be around the same level as last year. Group net profit was 2.24 billion marks last year.

Pretax profit was 3.3 billion marks, or $1.8 billion, down modestly from almost 3.4 billion marks a year earlier.

The decline in pretax profits was due to a rise in development, distribution and investment-related costs, the company said.

In addition, VW suffered from the continued economic crisis in South America, which led to a ``significant loss'' at its Brazilian unit.

VW and Audi brand cars helped offset that with gains elsewhere, the company noted.

The full-year earnings will depend largely on developments in the fourth quarter, VW said, noting that the last three months of 1998 were ``extraordinarily successful.''