Volkswagen’s first-half operating profit fell to €5.93bn as China demand plunged and US production shutdowns weighed on earnings.
Volkswagen Group posted a first-half operating profit of €5.93bn, down 11.6% year-on-year, as weaker demand in China and costs tied to ending US production of the ID.4 electric SUV dragged on results. Sales revenue edged 0.2% lower to €158.10bn, while operating return on sales slipped to 3.8% from 4.2% in the prior-year period.
The €0.8bn profit decline was driven by €0.5bn in costs related to the US ID.4 exit and unfavorable mix effects, partially offset by lower restructuring expenses and currency tailwinds. Excluding special items, operating profit stood at €6.9bn, or 4.3% of sales. Second-quarter sales revenue rose 2% to €82.44bn, but operating profit fell 9.5% to €3.46bn.
Deliveries dropped 6.3% in the first half to 4.13 million units, with a 31.6% plunge in China outweighing growth in Europe and South America. Earnings after tax fell 30.7% to €3.10bn for the half, reflecting broader margin pressures.