(RTTNews) - Volkswagen (VKW.L, VLKAF.PK, VOW.BE) reported first half earnings to shareholders of 6.4 billion euros compared to 7.5 billion euros, a year ago. Earnings per ordinary share was 12.70 euros compared to 14.86 euros. Operating result was 10.1 billion euros compared to 11.3 billion euros, prior year. The company said the decline in operating result is related to several non-operating factors, in particular unplanned provisions for the severance program at Volkswagen AG; operating margin further impacted by higher fixed costs, charges related to the deconsolidation of VW Bank Russia, and the closing of part of a gas turbine business at MAN Energy Solutions. Sales revenue increased to 158.8 billion euros from 156.3 billion euros, previous year. Automotive sales revenue was 129.4 billion euros compared to 130.6 billion euros. The company noted that the sales revenue increased due to strong business development in Financial Services. Vehicle sales were 4.3 million, down 2% from last year.
Also, the company confirmed its outlook for 2024. The Volkswagen Group expects the sales revenue to exceed the previous year's figure by up to 5% in 2024. The operating return on sales for the Volkswagen Group and the Passenger Cars Business Area is likely to be between 6.5% and 7%.
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