Volkswagen reports biggest quarterly profit in 2 years on U.S., China demand
Volkswagen has been saying for some time now that it plans to take over Toyota”s spot as the worlds leading car manufacturer, and seem to be headed in the right direction as the company just announced its biggest quarterly profit in 2 years based on increased demand in China and the U.S. for the Golf and Audi A5.
Q2 net income quadrupled to 1.25 billion euros from 283 million euros a year previous. Profit beat the 721 million-euro median estimate of nine analysts surveyed by Bloomberg News, and revenue rose 22% to 33.2 billion euros.
“VW has a sound model mix and a solid footing in the growth regions of the world, that’s why they had a strong quarter,” Daniel Schwarz, a Frankfurt-based analyst at Commerzbank AG, said before the release. “VW’s volume brands are selling well while Audi is benefiting from the reviving luxury market.”
U.S. first-half sales increased 29% to 175,300. Much of this was spurred on by the Jetta, which accounted for 44% of the total. Other models that posted gains included the Tiguan, Passat CC, and Rabbit.
– By: Stephen Calogera
Source: Automotive News
