Volkswagen hit by €2.2bn diesel emissions charge

German carmaker Volkswagen has set aside another €2.2bn in the first six months of the year in relation to its emissions scandal.

Excluding the charge and other one-off items, the firm said its operating profit for the half-year until the end of June was up 7% to €7.5bn.

The better-than-expected performance lifted the firm's shares by 4.6%

VW admitted last year to installing illegal software disguising the level of emissions from its diesel cars.

The so called "defeat devices", which deactivated pollution controls, were placed in 11 million cars worldwide.

Europe's biggest car manufacturer said it had seen an improvement in European car markets and the return of orders from corporate fleets.

"The operating result for the Volkswagen group before special items is significantly higher than market expectations for the first half of 2016," VW said in a statement.

The €2.2bn charge relates mainly "to further legal risks predominately arising in North America," the company said.

VW has already set aside €16.2bn to pay for technical upgrades for cars that break clean air standards, buying back cars, and legal costs.

And it says it still expects 2016 sales revenue to fall by up to 5% compared to 2015.

On Tuesday three US states - New York, Massachusetts and Maryland - said they had taken legal action against VW in the wake of the carmaker's emissions scandal.

New York's Attorney-General called the use of "defeat devices" a "widespread conspiracy" and a "cunningly cynical fraud".

"It is regrettable that some states have decided to sue for environmental claims now, notwithstanding their prior support of this ongoing federal-state collaborative process," VW said.

Last month, the carmaker announced a $15.3bn settlement with federal regulators, several states and thousands of owners of the affected vehicles.

That deal included a "partial settlement" with New York and 43 other states worth $603m.

Last week, British MPs said that Volkswagen's failure to compensate UK owners of cars affected by the emissions scandal was "deeply unfair".

UK owners can get affected diesel vehicles repaired, but in the US they can also claim up to $10,000 compensation.