Volkswagen results impressive despite emissions scandal fallout
Volkswagen has driven home a better-than-expected set of results, despite the company having to grapple with the financial fallout of the diesel emissions scandal.
Shares in VW soared 6% in Frankfurt after it issued a surprise announcement showing its results were “significantly higher” than the market had predicted, with its operating result before special items hitting €7.5bn (£6.3bn) for the first half of the year.
The German car maker said it had stepped up its performance thanks to stronger demand for VW cars in the second quarter. However, the firm said it would take a €2.2bn (£1.8bn) hit in special items to cover “legal risks” in America linked to the emissions scandal.
The company said: “The key difference in the group operating result before special items to market expectations relates among others in particular to improvements in the result of the Volkswagen brand in the second quarter, especially in comparison to the weak first three months. “Causal factors include demand seasonality, the improved car market in Europe, as well as the return of orders from large corporate fleets that we had forecasted.”