FRANKFURT, July 25 — The Volkswagen Group on Friday reported a drop in second quarter net profit, weighed down by weak performance at its premium brands Porsche and Audi, high costs from increased US import tariffs, and higher sales of lower-margin electric models, reported German news agency dpa.
The German carmaker posted net profit of €2.29 billion (RM11.34 billion), down about a third from a year earlier.
Operating profit fell around 29 per cent to €3.83 billion, resulting in an operating margin of 4.7 per cnet, in line with analyst expectations.
Revenue declined 3 per cent to €80.6 billion, despite slightly higher vehicle deliveries.
Volkswagen warned of lower full-year profitability, citing weaknesses at Porsche and Audi as well as tariffs on imports to the United States.
President Donald Trump has imposed a 25 per cent levy on auto imports in a bid to boost the domestic industry.
Europe’s largest carmaker now expects an operating margin of between 4 per cent and 5 per cent, down from a previous forecast of 5.5 per cent to 6.5 per cent.
Analysts had already predicted margins below 5 per cent.
Chief executive Oliver Blume also trimmed the revenue outlook, now expecting flat sales versus last year rather than growth of up to 5 per cent. — Bernama-dpa