Volkswagen slightly lifts 2017 forecast

FRANKFURT AM MAIN: The world’s largest carmaker Volkswagen lifted slightly its forecast for the full year, hailing strong performance even as it faces a brewing scandal at home in Germany.

The group based in Wolfsburg, northern Germany reported net profits attributable to shareholders of 3.1 billion euros ($3.63 billion) between April and June, up from 1.15 billion in the same period last year.

Operating, or underlying profits grew to 4.5 billion euros compared with 1.9 billion in 2016’s second quarter, on the back of revenues increasing 4.7 per cent to 59.7 billion.

“We are financially well-equipped for the transformation of the automobile industry and the questions of the future,” chief financial officer Frank Witter said in a statement.

Looking ahead to the full year, VW expects to increase revenue by “more than 4.0 per cent” compared with 2016, a slight increase on its previous ambition of “up to 4.0 per cent”.

The group continues to predict growth in operating profits of between 6.0 and 7.0 per cent. Volkswagen’s results in 2016 were sapped by the fallout of a diesel emissions scandal that saw it admit to cheating regulatory tests on 11 million vehicles worldwide.

It has now committed to paying out tens of billions of dollars in fines and compensation payments in the United States alone, while refitting vehicles in the European Union to meet emissions standards. — AFP