Restructuring costs at truck division hit bottom line at Volkswagen in Q2

Economic Indicators Associated Press

Automaker Volkswagen AG says profits slipped by 16 percent in the second quarter.

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The bottom line was hit by 180 million euros ($198 million) in restructuring costs at its MAN truck division. The company also faces headwinds from troubled economies in China, Russia and Brazil.

Profit after tax fell to 2.73 billion euros from 3.25 billion euros in the prior-year quarter. Revenues rose 9.9 percent to 56.04 billion euros, largely boosted by favorable exchange rate changes.

Volkswagen said Wednesday that earnings from joint ventures with Chinese auto makers were roughly flat over the first half of the year.

CEO Martin Winterkorn said "Volkswagen remains very well positioned in an increasingly difficult market environment" and was keeping a "close watch" on global economic trends.