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VW says net profit leaps more than three-fold

VW says net profit leaps more than three-fold
AFP
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First Published: Thu, Jul 28 2011. 05 36 PM IST
Updated: Thu, Jul 28 2011. 05 36 PM IST
Frankfurt: Volkswagen, Europe’s biggest car maker, said Thursday that net profit tripled in both the second quarter and first half of the year, but VW shares crashed in midday trading nonetheless.
A VW statement said net profit in the three months from April through June leapt to €4.784 billion ($6.86 billion) from €1.351 billion in the same period of 2010.
From January through June, the figure climbed to €6.496 billion from €1.824 billion.
Second-quarter sales were 21.5% higher at almost €40.3 billion, and reached nearly €77.8 billion for the first half, VW said.
Chairman Martin Winterkorn was quoted as saying that “ongoing strong demand in strategically important markets is providing a tailwind” and that a large number of new models would help underpin results going forward.
But he also cautioned that “the coming months will be challenging for us and will require us to work hard to maintain this high level.”
A statement said VW expected full-year 2011 deliveries to surpass the level in 2010, and that sales and operating profit would be “significantly higher than the previous year.”
Investors were disappointed that VW did not give a detailed increased outlook for the year however.
Shares in the auto giant plunged in midday trading on the Frankfurt stock exchange, losing 6.66% to €134.45 while the DAX index was down by 1.61% overall.
It was hard to argue with the results themselves however, as second-quarter operating profit soared by 59.2% to €3.17 billion on a 14.6% rise in deliveries to 2.14 billion vehicles.
The group put its net cash position on June 30 at €19.4 billion, a gain of 11 .1% from the first half of 2010.
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First Published: Thu, Jul 28 2011. 05 36 PM IST
More Topics: Company Results | Volkswagon | Germany | Auto | Cars |