Volkswagen 2Q Profit Rises. Hike Fiscal Year Sales Guidance

By William Wilkes Features Dow Jones Newswires

Volkswagen AG's net profit rose in the second quarter, fueled by increases in sales--further distancing the car maker from the hit from the emissions-cheating scandal that erupted in 2015.

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Second-quarter net profit came to 3.19 billion euros ($3.72 billion), compared with EUR1.21 billion in the year-earlier period, the automaker said.

Second-quarter sales read EUR58.67 billion, up 4.7% from a year earlier.

Net cash outflows in the automotive division came to EUR3.4 billion, largely due to payouts related to the diesel emissions scandal. The scandal has cost the company around $25 billion in fines, penalties and compensation so far.

Volkswagen tweaked its guidance for full-year sales, saying it expects them to rise by more than 4% compared, to the "up to" 4% forecast previously. The company maintained its forecast for an operating return of sales between 6% and 7%.

-- Write to William Wilkes at william.wilkes@wsj.com

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(END) Dow Jones Newswires

July 27, 2017 03:22 ET (07:22 GMT)