VW Posts Q2 Profit

German carmaker Volkswagen posted a forecast-beating 23% rise in underlying quarterly operating profit on Wednesday, even as difficulties conforming to new anti-pollution rules cloud the sales outlook for passenger cars. A 5.5% rise in vehicle sales helped lift second-quarter operating profit before special items to €5.58 billion from €4.55 billion a year earlier, compared with analyst consensus for €4.98 billion in a Reuters poll. Earnings were however hit by a €1 billion fine for its diesel cheating and a further €600 million hit for legal expenses, VW said. Despite confirming its outlook for a full-year adjusted operating margin of between 6.5% and 7.5%, Volkswagen warned that sticking to its financial targets will be a challenge. After special items, VW said it anticipates that its operating return on sales will fall “moderately short”.