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Elham AbolFateh

Automobile

VW profit rises in Q2; full-yr guidance dims

Wednesday 01/August/2018 - 04:06 PM
Sada El Balad
Edited by Hassnein Tayea
Volkswagen (VW) on Wednesday reported a rise in its net profit and sales revenue in the second quarter of 2018، despite booking an EUR 1.6 billion ($1.87 billion) fine on its diesel emission crisis among other challenges over the past months.

The German automaker’s earnings attributable to its shareholders totalled EUR 3.23 billion ($3.78 billion) in Q2-18، compared with EUR 3.04 billion in Q2-17.

Operating profit before special items increased 22.7% to EUR 5.58 billion in the period between April and June، compared with EUR 4.54 billion in the comparable period last year.

Diluted earnings per share (EPS) rose to EUR 6.44 during the three-month period ended last June، compared with EUR 6.06 in the same period of the previous year.

The auto giant generated EUR 61.14 billion in sales revenue during the second quarter of this year، 3.4% higher than EUR 59.15 billion a year ago.

German prosecutors imposed an EUR 1 billion fine on the Wolfsburg-based firm in relation to the emissions-cheating scandal. In 2015، the German carmaker admitted to having equipped millions of diesel cars to evade emissions testing.

In June، VW has said that the production of about 250،000 cars will be postponed، as it struggled to adjust its vehicles to the new Worldwide Harmonized Light Vehicle Test Procedure (WLTP)، emissions regulation، which will take effect on 1 September in Europe.

“We cannot rest on our laurels because great challenges lie ahead of us in the coming quarters especially regarding the transition to the new WLTP test procedure،” VW CEO Herbert Diess said in a statement.

“Growing protectionism also poses major challenges for the globally integrated automotive industry،” Diess added.

Though VW confirmed its guidance for the full-year، anticipating adjusted operating margin to range between 6.5% and 7.5%، it warned that sticking to its financial targets will be a challenge.

After special items، the German car manufacturer expects that its operating return on sales will fall “moderately short.”

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