Volkswagen reported a 2.4% drop in operating profit in the second quarter as Europe’s leading carmaker continues to cut costs and revamp its model range.
Earnings before interest and taxes (EBIT) amounted to EUR 5.46 billion (USD 5.91 billion) in the April-June period, with an operating return on sales of 6.6%, in line with LSEG’s mid-point estimates.
In July, the group cut operating return forecasts to a range of 6.5-7.0% due to higher costs due to possible Audi plant closures and a 3.8% drop in sales in the second quarter.
“We will need to make significant cost-cutting efforts in the second half of the year and beyond to achieve our goals,” Chief Financial Officer Arno Antlitz said in a statement, describing first-half operating returns as “too low.”
Antlitz said in April that it expected the increase in orders to have a positive impact on second-quarter results, after the automaker reported a 20% drop in profit in the first three months of the year.
Source: Seebiz.eu
Photo: Archive Autoblog.rs / Volkswagen
Source: autoblog.rs
