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Volkswagen increases profits, sales in shrinking markets

Posted at 11:32 PM, Jul 24, 2019
and last updated 2019-07-25 02:32:04-04

FRANKFURT, Germany (AP) — Volkswagen says after-tax profit rose by 24 percent in the second quarter as the company managed to increase its share in contracting markets, and as more-profitable vehicles took a bigger role in the sales mix.

Net profits rose to 4.11 billion euros ($4.58 billion) from 3.31 billion euros in the year-ago period. While the number of vehicles sold fell slightly, sales revenue rose 6.6 percent to 65.18 billion euros.

Chief financial officer Frank Witter said Thursday that “the Volkswagen Group performed very well in a generally weaker overall market.”

Though the company reaffirmed its operating profit forecast for the year despite risks from trade protectionism and an expected slight contraction in the global auto market, it said profits would be toward the lower end of the predicted range.