Facebook Twitter

VW declares 30% rise in first-half net profit

SHARE VW declares 30% rise in first-half net profit

BERLIN — German automaker Volkswagen AG said Friday its first-half profit jumped by 30 percent and forecast that higher export sales would help boost profit for the rest of the year.

Net profit was 833 million euros ($731 million) for the six months ending June 30, up from 641 million in the same period last year.

Sales rose by 9.8 percent to 46.77 billion euros ($41 billion) from 42.58 billion euros last year.

Volkswagen restated its target of higher full-year earnings and sales but didn't indicate by how much.

"We expect falling sales in Germany, a consequence of weaker-than-expected developments in the automobile market, to be more than compensated for by higher export sales, also in the second half," the company said in a statement.

It added that cost-cutting measures introduced earlier this year will also help offset the decline of earnings in Germany.

Wolfsburg-based Volkswagen posted a net profit of 1.45 billion euros ($1.27 billion) when measured in accordance with international accounting standards, which are often considered more transparent than traditional German methods.

This is the first year Volkswagen has reported earnings according to the new standards, and there are no earlier figures for comparison.

The figures include all brands, including flagship Volkswagen, luxury lines Audi and Rolls-Royce, Czech subsidiary Skoda, Spanish subsidiary Seat, sports maker Lamborghini and the company's commercial vehicle division.