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VW first-half operating profit up 61.6%

Volkswagen Group’s operating profit was up 61.6% year-on-year to €1.4bn (£966m) in the period January-June 2005, on sales revenue of €46.016bn (£38bn).

Pre-tax profit was €672m (£303m), and after-tax net profit €403m (£278m). The volume of vehicles delivered was 2.559m, or 2.337m excluding sales by VW’s two Chinese joint ventures.

The automotive division generated an operating profit of €871m (£601), more than double the 2004 first-half figure of €341m (£235m), while the financial services division registered an operating profit of €504m (£348m).

Management board chairman Bernd Pischetsrieder said the global environment remained unfavourable to VW, and that the group expected to achieve savings from its ForMotion restructuring programme of €3.5bn (£2.4bn) during the current year.

While the VAG group brands registered a profit, the VW brand itself did not. VW plans significant restructuring of its Chinese operations which have been losing market share, and Pischetsrieder said it would be impossible for the group’s US operations to break even in 2006.

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