Mexican Media Brands
VW Group’s Operating Profit Plunges 57%
Volkswagen AG says its pretax operating profit in the second quarter plummeted to 57% to €1.6 billion ($1.8 billion). Results were dragged down by special items, most of them costs associated with the company’s diesel emissions scandal.
#economics
Share
Volkswagen AG says its pretax operating profit in the second quarter plummeted to 57% to €1.6 billion ($1.8 billion). Results were dragged down by special items, most of them costs associated with the company’s diesel emissions scandal.
Profit after tax plunged 56% to €1.2 billion in the second quarter and 37% to €3.6 billion ($4 billion) through the first six months of 2016.
Group retail deliveries in April-June grew 2% to 2.61 million vehicles, and revenue advanced 2% to €57 billion ($63.2 billion). Net cash flow from automotive operations jumped 19% to €3.9 billion ($4.3 billion).
Bloomberg News estimates second-quarter profits for the company’s VW brand fell 12% to €808 million. It says the unit’s profit margin shrank to 2.9% from 3.4% a year earlier.
Group sales revenue through the first half of 2016 slipped 1% to €107.9 billion ($119.7 billion). Retail deliveries rose 2% to 5.12 million vehicles. Operating profit shrank 22% to €5.3 billion ($5.9 billion). CEO Matthias Mueller says full-year revenue could drop as much as 5% from last year’s total.
RELATED CONTENT
-
On Automotive: An All Electric Edition
A look at electric vehicle-related developments, from new products to recycling old batteries.
-
On Electric Pickups, Flying Taxis, and Auto Industry Transformation
Ford goes for vertical integration, DENSO and Honeywell take to the skies, how suppliers feel about their customers, how vehicle customers feel about shopping, and insights from a software exec
-
Jeeps Modified for Moab
On Easter morning in Moab, Utah, when the population of that exceedingly-hard-to-get-to town in one of the most beautiful settings on Earth has more than doubled, some people won’t be hunting for Easter eggs, but will be trying to get a good look at one of the vehicles six that Jeep has prepared for real-life, fast-feedback from the assembled at the annual Easter Jeep Safari.
