Volkswagen Group made less profit in the second quarter
The Volkswagen Group's second-quarter profit fell less than expected - despite problems at its biggest brands. Operating profit dropped 2.4% to 5.46 billion euros, the DAX company reported. Analysts had predicted a bigger decline. Revenue rose 4.1% to 83.3 billion euros, thanks to strong financial services, but net profit fell 4.2% to 3.63 billion euros.
The group was hit by declines in daily business at key profit drivers Porsche and Audi, and the costs of job cuts at the core VW Pkw brand. VW has already set aside 0.9 billion euros for this. The roughly 1.7 billion euros in special expenses for the potential closure of Audi's Brussels plant are expected to follow in the current third quarter - which led the Wolfsburg-based company to lower its full-year earnings forecast in early July. The management, led by CEO Oliver Blume, confirmed this outlook.
The Volkswagen Group experienced challenges at its key brands Porsche and Audi, causing a decline in their daily business. The overall group was hit by these issues and the costs of job cuts at the VW Pkw brand.
