Volkswagen, Europe's biggest carmaker, on Friday reported a 17 per cent rise in second-quarter earnings to E805m ($707m) from E686m a year earlier as robust exports offset a sluggish domestic market..
Volkswagen, Europe's biggest carmaker, on Friday reported a 17 per cent rise in second-quarter earnings to E805m ($707m) from E686m a year earlier as robust exports offset a sluggish domestic market.
The German carmaker said first-half pre-tax profit to the period ended June 30 rose 16 per cent to E1.5bn from E1.3bn a year ago, according to German HGB accounting standards.
Second-quarter net income rose to E444m, or 1.18 per share, from E394m, or 95 cents a share, up 13 per cent in line with analysts expectations. Sales were up 9.7 per cent to E23.7m from E21.6m the previous year.
The Volkswagen brand and Audi were the main drivers behind the strong demand in North America and Asia, which accounted for the bulk of the sales. In the US, Audi sales rose by 7.3 per cent to 43,300 units, while deliveries in Asia increased 16.3 per cent to 228,061 units. The company reiterated its target to raise full-year earnings and sales. It said: "We expect that the fall in unit sales in Germany resulting from the weaker than originally planned development of the automotive market will again be more than compensated by higher sales outside Germany in the second half of the year."
Volkswagen added that the cost-cutting measures, which the company introduced earlier this year, would also help offset the decline of earnings in Germany.
Shares climbed 1.2 per cent to E52.71 in early morning trading in Frankfurt on Friday.