Volkswagen second-quarter profit drops by a third as revenue forecast cut
Volkswagen reported a 32.9% drop in second-quarter net profit and lowered its full-year revenue outlook due to falling sales in China and market headwinds.
Volkswagen reported a sharp drop in earnings for the second quarter, driven primarily by falling sales in China and broader automotive market challenges. Net profit fell by 32.9% year-on-year to €1.54 billion, while operating profit reached €3.47 billion, missing average analyst forecasts of €4.07 billion. Quarterly revenue reached €82.4 billion, slightly exceeding market expectations.
Following the results, the German automaker lowered its full-year revenue outlook. Volkswagen now projects full-year sales to remain flat or contract by up to 3%, abandoning its previous forecast of up to 3% growth. Company management described the operating environment as "extremely challenging" while navigating internal discussions regarding potential restructuring and workforce adjustments.
Sources: ORF, Der Standard, Tagesschau, Sweden Herald.