Volkswagen (ETR:VW) has posted record earnings despite taking another hit over emissions-cheating scandal.
The operating profits for the first half of 2016 did decline by 12 percent to €5.78billion. However, this implies operating profits of €3.4billion in the second quarter, €300million higher than expected.
Revenues rose 3.7 percent to €98.7billion in the first half of the year compared to last year’s first half. Vehicle deliveries were up 5 percent and sales rose by 0.8 percent.
The company stated today that improvements in the European car market and the return of corporate fleet orders has helped earnings exceed expectations.
In September last year the group admitted to illegally installing software to deactivate pollution controls in 11 million diesel vehicles causing concerns of crippling settlements.
Volkswagen had initially put €16.2billion aside to undertake the technical fixes on vehicles involved and cover legal charges. Another €2.2billion will now be added for this purpose.
This decision came the same day as three US states filed new official law suits against the Group related to the emission scandal.
Shares
Investors however, were not moved by the renewed legal action against the firm. Following the earnings announcement last night, the markets were quick to react when trading opened this morning.
Shares peaked at €124.1 at 9.20am GMT, up 6.7 percent to opening level.
In the wake of the scandal, shares plummeted from €169.7 on September 16th down to €92.4 by October 2th.
Volkswagen AG shares were trading at €123.4 at 12.05am GMT.