Volkswagen Reports 7% Increase in Profit for First Half of the Year

By Karin Sun on 31 July 2014
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DSC_0729The Volkswagen Group announced financial results for the first six months of 2014.  The company’s total operating profit for the first half of the year was €6.2 billion ($8.3 billion), a year-over-year increase of 7% from €5.8 billion in the first half of 2013.

Meanwhile, total revenue for the first half of the year was €98.8 billion, a slight increase of 0.1% from €98.7 billion in the same period last year.  The company said that the small net rise in revenue was due to the fact that revenue growth in the first half of the year was partly cancelled out by negative exchange rate effects.

Total worldwide deliveries in the first half of the year was up 5.6% year-over-year, with four brands seeing double-digit increases: Bentley (22.8%), Bugatti (18.8%), Škoda (12.5%), and Audi (11.4%).  Meanwhile, Seat had a 9.9% increase, Porsche had a 7.6% increase, and Volkswagen Passenger Cars saw a 3.8% increase in worldwide deliveries.

The company’s Škoda and Bentley brands showed the greatest year-over-year improvement in operating profit for the first half of the year.  Profit for Škoda was €425 million, a year-over-year increase of 74.9% from €243 million in the first half of last year, while Bentley saw an increase of 65.4%, up to €95 million from €58 million last year.

Audi’s profit for the first six months stayed roughly the same year-over-year, with a slight increase of 1% to €2.7 billion from €2.6 billion last year.  Profit for Porsche also saw a small increase of 8%, up to €1.4 billion from €1.3 billion last year, while operating loss for the Seat brand improved by 6.5% to a loss of €37 million from €40 million last year.

Volkswagen Passenger Cars reported a profit of €1 billion in the first half of the year, down 50% from €1.5 billion in the same period last year.  Meanwhile, profit for Volkswagen Financial Services increased by 11.5% in the first six months, up to €776 million from €696 million last year.

Volkswagen said it expects total revenue for 2014 to be plus-or-minus 3% from last year’s figure.

(Photo: Accura Media Group)