WOLFSBURG (dpa-AFX) - German automaker Volkswagen Group (VKW.L, VLKAF.PK, VOW.BE) reported Thursday that its second-quarter profit after tax surged to 3.19 billion euros from last year's 1.21 billion euros.
Profit before tax was 4.34 billion euros, up from 1.61 billion euros a year ago. The company said the prior-year results had been negatively affected by special items of 2.49 billion euros.
Operating profit increased to 4.55 billion euros from 1.90 billion euros a year ago. Operating return on sales grew to 7.6 percent from the prior-year 3.3 percent. Adjusted operating profit grew 3.7 percent from last year.
Group sales revenue rose 4.7 percent to 59.67 billion euros from last year's 56.97 billion euros.
Deliveries to customers in the quarter grew 2 percent to 2.661 million units. Vehicle sales increased 1.4 percent to 2.66 million units. Production was 2.70 million units, down 0.6 percent from last year.
Frank Witter, Member of the Board of Management, said, 'The results were boosted by growth in unit sales. Increases in the first half-year were seen primarily in Europe, but also in North and South America, which is particularly encouraging.'
Looking ahead, Volkswagen said it expects that deliveries to customers will moderately exceed the prior-year volume amid persistently challenging market conditions.
The sales revenues of Volkswagen Group, the Passenger Car Business Area and Commercial Vehicles Business Area are expected to grow by more than 4 percent year-on-year in 2017.
In terms of the operating profit, Volkswagen continues to anticipate an operating return on sales of between 6.0 and 7.0 percent for the current fiscal year.
In Germany, Volkswagen shares were trading at 135 euros, down 1.17 percent.
Copyright RTT News/dpa-AFX