Volkswagen said on Friday its core profits had fallen by more than half in the second quarter as a strong euro, new product costs and slumping demand took their toll, Reuters reported. According to the news agency, VW said its operating profit fell to 616 million euros ($US708 million) in the three months to the end of June from €1.4 billion a year ago. Its pre-tax profit fell to €679 million - a narrower decline than analysts had expected.