Volkswagen posts profit increase in 2nd quarter

FRANKFURT/TOKYO - The Associated Press

German automaker Volkswagen said its second-quarter earnings jumped 18 percent from a year ago, helped by stronger demand for cars in emerging markets and North America. Net profit for the April-June period increased to 5.64 billion euros ($6.84 billion) from 4.78 euros billion a year ago.

Revenues increased 19 percent to euros 48.1 billion.

The Wolfsburg-based manufacturer said that worldwide demand for cars increased in the second quarter in the U.S., China, Russia and India, and would increase again in the second half of the year - but at a slower pace.

It said the car market would shrink in western Europe, where economies are slowing due to spending cutbacks and consumer worries due to a crisis over too much government debt. Still yesterday.

Nissan, meanwhile, posted a 15 percent drop in quarterly profit as a strong yen and weak European market dented earnings, but Japan’s second-biggest automaker said its full-year forecast was on track. Yesterday, Nissan said its business in the debt-hit European market took a beating, with sales down 1.7 percent. In its fiscal first-quarter through June, Nissan said its net profit fell 15 percent to 72.3 billion yen ($927 million) with an operating profit of 120.7 billion yen, which is down 19.7 percent from a year earlier.
 Sales were 2.6 percent higher at 2.14 trillion yen, it said.