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VW First-Half Income Slides 46%
Volkswagen AG's net profit dropped to €4.8 billion ($6.4 billion) in the first half of 2013 from €8.9 billion ($11.8 billion) a year earlier despite a 4% increase in revenue to €98.7 billion ($131 billion).
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Volkswagen AG's net profit dropped to €4.8 billion ($6.4 billion) in the first half of 2013 from €8.9 billion ($11.8 billion) a year earlier despite a 4% increase in revenue to €98.7 billion ($131 billion).
Year-on-year comparisons are skewed by a €2 billion ($2.7 billion) gain on VW's Porsche options that inflated earnings in the first half of 2012.
Operating income, which excludes such factors, fell 12% to €5.8 billion ($7.7 billion) in the January-June period. The company attributes the decline to recall costs in China and one-time charges at its MAN truck unit.
VW reports that vehicle deliveries rose 5% to 4.8 million units in the first half. Earlier this month the company said it delivered 4.7 million vehicles in that period, a 6% year-on-year increase.
VW confirms its forecast that operating profit this year will match last year's €11.5 billion ($15.3 billion) total, and revenue will increase from €192.7 billion ($255.8 billion) in 2012.
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