VW: posts record first-half results, despite diesel issue

(CercleFinance.com) - Volkswagen Group on Wednesday posted record figures for deliveries, sales revenue and earnings before special items for the first six months of the year.


From January to June, group sales revenue rose by 3.5% to 119.4 billion euros, while operating profit before special items grew by almost 10% to 9.8 billion euros.

However, the German carmaker had to book costs of 1.6 billion euros related to the diesel scandal in the second quarter, prompting its operating result to fall 8.5% to 8.2 billion euros.

Regarding deliveries, the group shipped 5.5 million vehicles to customers in the first half, up 7.1% year-on-year.

For the full-year, VW expects deliveries to moderately exceed their level in 2017, despite challenging market conditions, such as growing competition, exchange rate volatility and the diesel issue.

Sales revenue is expected to rise by as much as 5% in 2018, with an operating return on sales before special items of 6.5% to 7.5% the group said.

VW preference shares were down 2.2% at 148.9 euros on the Xetra market after these results.

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