Volkswagen Group has reiterated its full year 2013 forecast of matching last year’s EUR11.5 billion in operating profit despite posting an 11-percent drop in earnings in the first half of the year. The German carmaker saw its underlying profit drop to EUR5.78 billion ($7.66 billion) in the first six months of 2013 from EUR6.54 billion in the same period in 2012.
Volkswagen Group likewise reiterated targets to achieve new record levels for sales and deliveries, expecting its operations to gain better in the remaining part of 2013. According to the carmaker, costs from an engineering overhaul, facilitating production of small and medium front-wheel-drive family models like the Golf "will have an increasingly positive effect" on its future earnings.
VW is now feeling the impacts of weakening auto markets after seeing its sales in June rise at the third-slowest pace in 17 months. VW, however, posted record group deliveries of 4.7 million cars in the first half of 2013. The carmaker said that it is not “completely immune to the intense competition and its impact on business, adding that there will be “increasingly stiff competition in a challenging market environment.” [source: Reuters]