Economy News

Volkswagen confirms outlook as operating profits tumble in Q2

BERLIN (Reuters) -The Volkswagen (ETR:VOWG_p) Group saw a 27.7% fall in operating profit before special items to 4.7 billion euros ($4.79 billion) in the second quarter, the carmaker reported on Thursday, as negative valuation effects from commodity hedging transactions weighed on results.

Revenue rose 3.3% in the second quarter from last year to 69.5 billion euros, it said.

Still, the carmaker confirmed its outlook for the full year as first-half results were overall strong, it said, buoyed by higher profits in the first quarter and an easing supply chain situation.

Across the first six months of the year, the carmaker saw 16.1% growth in operating profit to 13.2 billion euros.

“The group expects the product mix to normalise in the second half of the year as the semiconductor situation improves and the company benefits from a strong order backlog,” Chief Financial Officer Arno Antlitz said.

($1 = 0.9802 euros)


Leave a Reply

Your email address will not be published. Required fields are marked *