Volkswagen Reports Record First Half Earnings

The German car group Volkswagen reported a record operating profit of 11.4 billion euros (291 billion CZK) in the first half of the year. In the same period in 2019, ie before the pandemic, the operating profit was ten billion euros, which was a record until then. The company also increased its full-year forecast. The outlook for operating return on sales for the full year this year rose by 0.5 percentage points to six to 7.5 percent. The company, which also includes the Czech carmaker Škoda Auto, stated this in its statement today.

Premium corporate brands and financial services divisions had the largest share in the result, showing growth in double digits. “We are maintaining a high pace, both operationally and strategically,” said Herbert Diess, the company’s chief executive. He added that the electric car division also made progress. Diess would like Volkswagen to overtake the American company, Tesla, in the middle of the decade in the position of the largest manufacturer of electric cars in the world.

Volkswagen, like other car manufacturers, was hit by a shortage of semiconductors in the spring. The company warned that this could be reflected in lower deliveries. Last year, Volkswagen delivered 9.3 million cars and says there should be a little more this year. Previously, the company assumed that deliveries would be significantly higher.

In the middle of last year, Volkswagen reported an operating loss of 1.5 billion euros, with the second quarter being particularly bad. However, pre-tax revenues are already higher than for the whole of last year.