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VW profit jumps as core brand pushes cost cuts, models

  • Earnings before interest and tax jumped to 4.55 billion euros ($5.34 billion) from 1.90 billion a year earlier, VW said.
  • First-half earnings at the core namesake brand doubled to 1.8 billion euros.
  • The group stuck to its guidance for 2017.
Volkswagen
Ashlee Espinal | CNBC
Volkswagen

Volkswagen said group operating profit more than doubled in the second quarter, helped by cost cuts and higher-margin new models at its core namesake brand.

Earnings before interest and tax jumped to 4.55 billion euros ($5.34 billion) from 1.90 billion a year earlier, VW said on Thursday, beating a 4.49-billion-euro consensus forecast in a Reuters poll of analysts.

First-half earnings at the core namesake brand doubled to 1.8 billion euros, VW said, citing cost cuts and higher volume sales.

The group stuck to its guidance for 2017, which sees the return on sales coming to between 6 and 7 percent, after reaching 6.7 percent in 2016, and group revenue exceeding last year's record 217 billion euros by as much as 4 percent.

It also affirmed an aim for a moderate rise in full-year deliveries.

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