Volkswagen takes steps to boost its China business as first-half earnings fall by 20%
Volkswagen has seen after-tax earnings fall by 20% in the first half of the year from the same period last year
FRANKFURT, Germany (AP) — Volkswagen saw after-tax earnings fall by 20% in the first half of the year, to 8.5 billion euros ($9.45 billion), as the automaker tries to engineer a rebound in China.
The decline from the same period last year was due in part to a 2.5 billion euro non-cash loss on raw materials hedging in financial markets. Companies use such market strategies to offset risk and insure themselves against rapid changes in the prices of raw materials.
Volkswagen said operating earnings, excluding the hedging effect, rose 13% to 13.9 billion.
Chief Financial Officer Arno Antlitz said the company “achieved solid financial results” in the first six months of the year and that with changes in the China business, “we will improve the competitive business of the Volkswagen Group even further.”
