Volkswagen Posts 1.2 Billion Euros Operating Profit in H1

After last week it proudly announced it managed to increase its global market share to 12 percent, German manufacturer Volkswagen posted today its financial results for the first half of the year, recording a 1.2 billion euros operating profit, with some 928 million of that money coming in the strong second quarter. After tax, the Volkswagen Group was left with a 494 million euro profit, way down from the 2.6 billion recorded last year.

"The course of the year so far shows that we are excellently positioned, thanks to our multibrand Group model. Even in a particularly difficult phase in the international automotive markets we were able to gain share in key markets. This has further improved our position on our way to the top," Martin Winterkorn, Volkswagen CEO said in a release.

Volkswagen's world passenger car market increased from January to June by 2.1 percent, jumping from 9.9 percent to 12 percent. VW managed to sell 3,100,300 vehicles in the first half. In June, deliveries by the group even rose by 6.5 percent to 609,800 units from one year ago.

For the remainder of 2009, as all other automotive players, Volkswagen doesn't expect rivers of milk and honey. The group says its sales revenue will be below that of the previous year due to declining unit sales. Yet, Volkswagen forecasts it will close 2009 with a profit.

"Thanks to our sound business model, we increased our financial strength despite the adverse environment. This is also evident from our strong net liquidity position," Hans Dieter Pötsch, Volkswagen CFO added. "Preserving our financial flexibility is a top priority. At the same time, we are investing prudently in renewing and expanding our forward-looking product portfolio."