VW says H1 profit leaps to 6.5 billion euros

28th July 2011, Comments 0 comments

Volkswagen, Europe's biggest car maker, said Thursday its first half-net profit leapt more than three-fold to 6.5 billion euros ($9.3 billion).

Sales in the six-month period from January through June jumped by 25.8 percent to almost 77.8 billion euros, a statement added, as emerging markets gave German automakers a major boost early in the year.

That was in line with an average analyst forecast of 77.5 billion euros compiled by Dow Jones Newswires.

Investors were not impressed however, and shares in the auto giant plunged in midday trading on the Frankfurt stock exchange, losing 3.40 percent to 139.15 euros while the DAX index was down by 1.23 percent overall.

A breakdown of the VW results nonetheless showed that the group's operating profit had more than doubled to 6.086 billion euros from 2.841 billion in the first half of 2010.

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."

It cautioned however about possibly negative effects from "the continuing volatility in interest and exchange rates and commodity prices."

© 2011 AFP

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