Volkswagen Group reported an 11.6% decline in first-half operating profit to €5.93 billion. The automaker also cut its full-year revenue outlook, now forecasting a decline of 3% to 0%, down from an earlier projection of 0% to 3% growth.
First-half sales revenue slipped 0.2% to €158.10 billion, while earnings after tax plunged 30.7% to €3.10 billion. Deliveries to customers fell 6.3% to 4.13 million units, with vehicle sales down 8.4% to 4 million units.
Excluding special items, the group's operating result stood at €6.9 billion, representing a return on sales of 4.3%. Special items included about €0.5 billion in costs related to ending U.S. production of the ID.4. The group attributed the €0.8 billion operating profit decline mainly to those costs and unfavorable product mix effects.
In the second quarter, operating profit decreased by about 9.5% to €3.46 billion (one source reported 10% to €3.5 billion). Sales revenue rose 2% to €82.44 billion, while earnings after tax fell 32.9% to €1.53 billion. The operating return on sales improved to 4.2%.
Brand Group Performance and Cost Cuts
The Core brand group (Volkswagen, Škoda, Seat/Cupra) posted a 4.5% rise in operating profit to €3.61 billion. The Progressive group (Audi, Bentley, Lamborghini) reported €1.12 billion, while the Sport Luxury group (Porsche) saw profit jump to €1.20 billion from €832 million.
Volkswagen has already committed to 50,000 job reductions, including at its Porsche and Audi divisions. CEO Oliver Blume told staff that a further 50,000 positions could be eliminated, potentially bringing total job cuts to 100,000.
The group revised its outlook citing macroeconomic pressures, uncertainty over trade restrictions, geopolitical tensions, stronger competition, volatility in commodity, energy and currency markets, and changing emissions regulations. The forecast assumes current tariff arrangements remain unchanged and excludes effects from a possible escalation in the Middle East.