Volkswagen reports a decline in net profit by 36 %. American tariffs and weaker performance of premium brands significantly marked the year -round prognosis.
The German automaker Volkswagen recorded a sharp decline in net and operating profits at the 2nd quarter. The company pointed out the weak results of its premium brands Porsche and Audi, as well as the influence of US import duties. The company cost more than a billion euros in the first half of this year. TASR reports this based on DPA, AFP and Reuters and RTTNews.
Volkswagen’s operating profit fell by more than 29 % to EUR 3.83 billion in the 2nd quarter. The company’s net profit was EUR 2.29 billion, which means a decrease of 36.3 %compared to the same period of last year.
VW sales reached EUR 80.6 billion and fell by about 3 %year -on -year, despite a slightly increased sales volume. In this context, the company pointed out the impact of US import duties on cars reaching 25 %. According to AFP, they cost the automaker in the 1st half of this year 1.3 billion euros.
At the same time, the company worsened the prospects for the whole year. After the results for the 2nd Quartal Volkswagen for the whole year, it expects zero growth of sales, while originally expected to grow by about 5 %. The operating margin should range from 4 % to 5 %. In the previous estimation VW reported a margin of 5.5 % to 6.5 %.
