Volkswagen revealed that its H1 results were “significantly higher” than expected, despite the controversy it has been embroiled in regarding the diesel emissions scandal. The German carmaker stated on Wednesday that its operating profit, before exceptional costs, for the first six months was €7.5bn. It aims to book a further €2.2bn of special items to cover “further legal risks” associated with the emissions scandal. Nonetheless, even after these are deducted, first half operating profits were €5.3bn. Volkswagen attributed these results to improvements in demand for VW-branded cars in the second quarter.
According to the carmaker, this increase in demand was partly due to an “improved” car market in Europe. However, VW is remaining cautious about the full year, releasing a statement saying, “The Volkswagen Group continues to anticipate that, depending on the economic conditions – particularly in South America and Russia – and the exchange rate development and in light of the diesel issue, we expect 2016 sales revenue for the Volkswagen Group to be down by as much as 5 per cent on the prior‐year figure.” They further stated, “In terms of the Group’s operating profit before special items, we anticipate that the operating return on sales will be between 5.0 per cent and 6.0 per cent in 2016.”