The Volkswagen Group boosted first half operating profit to EUR8.9bn (up from EUR7.5bn in H1 2016) while operating return on sales grew to 7.7% (7%) as sales rose 7.3% to EUR115.9bn.
Operating profit excludes the Chinese joint ventures which booked a dip to EUR2.1bn (EUR2.4bn). Pre-tax profit almost doubled to EUR9bn from EUR4.8bn (last year's result was hit by "special items", largely due to costs of the diesel emissions scandal). H1 2017 profit after tax also rose a lot to EUR6.6bn from EUR3.6bn.
Go deeper with GlobalData
Chairman Matthias Müller said: "The remarkable half-year result and the excellent development with regard to deliveries in June are confirmation that the group is on the right path again. We are grateful for the growing amount of trust we are enjoying among customers and on the capital markets."
The Volkswagen passenger car brand operating profit rose to EUR1.8bn from EUR0.9bn helped by favourable exchange rates and cost cutting.
Audi operating profit of EUR2.7bn was flat due to a decline in volume and the cost of new model and technology launches. (Audi includes Lamborghini and Ducati).
Skoda operating profit rose 25.5% to EUR860m and Seat's result 40.9% to EUR130m with the new Ateca boosting unit sales.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBentley operating profit returned to black ink – EUR13m after a EUR22m loss in H1 2016 – due to exchange rates lower model development expenses.
Porsche operating profit improved to EUR2.1bn from EUR1.8bn with the brand reporting "a considerable increase in demand" for Macan and Panamera.
Volkswagen Commercial Vehicles operating earnings improved 49.8% to EUR448m
Outlook
The group expects vehicle deliveries to "moderately exceed" 2016 volume "amid persistently challenging market conditions".
"We anticipate particular challenges resulting from the economic situation, intense competition in the market, exchange rate volatility and the diesel issue," the automaker said.
Sales revenues are expected to grow by over 4%. An operating return on sales of between 6% and 7% was forecast.
