Volkswagen stated on Wednesday that its first-half year operating profit has topped forecasts, boosted by cost-cutting measures at its core VW brand and increasing European car sales, but also announced a 2.2 billion euro or $2.4 billion provision for its Dieselgate-related legal battles with regards to its emissions cheating scandal.
The European carmaker reported that its operating profit for the half year that ended on June, apart from one-off-items, was up by 7% to 7.5 billion euros. However, including the one-off items, the carmaker said its operating profits stumbled by 22% to 5.3 billion euros.
In an impromptu update before release of interim results scheduled on July 28, the company said that this topped analysts’ forecasts, but did not provide those estimates. Volkswagen shares climbed by 5.1% at 122.35 euros at 0950 GMT.
The material has been provided by InstaForex Company – www.instaforex.com