VW Group Profits Soar

Volkswagen AG’s increased revenue 5% to €59.7 billion ($69.6 billion) in April-June. Net profit surged to €3.2 billion ($3.7 billion) from €1.2 billion in the same period last year.

The group’s second-quarter operating profit, which excludes results from its joint ventures in China, more than doubled to €4.5 billion ($5.2 billion). Vehicle deliveries rose 2% to 2.66 million units.

VW’s pretax earnings through the first half of 2017 grew 19% to €8.9 billion ($10.4 billion). Revenue increased 7% to €115.9 billion ($135.2 billion). Six-month sales volume advanced 1% to 5.27 million vehicles.

The company’s VW car brand doubled its operating profit to €1.8 billion ($2.1 billion) in January-June. Audi brand EBIT was unchanged at €2.7 billion ($3.1 billion). Porsche saw its profits climb 17% to €2.1 billion ($2.5 billion). Skoda’s EBIT rose 26% to €860 million ($1 billion).

VW’s Scania and MAN heavy-duty truck operations posted first-half profit gains of 22% to €673 million and 4% to €193 million, respectively.

VW Group expects to “moderately exceed” last year’s unit volume of 10.30 million units in spite of headwinds caused by its lingering diesel cheating scandal, volatile exchange rates, intense competition and uncertain economic trends.