DGAP-Adhoc: VOLKSWAGEN AG: The Operating Result for the Volkswagen Group before special items is significantly higher than market expectations for the first half of 2016.

VOLKSWAGEN AG  / Key word(s): Miscellaneous

20.07.2016 11:05

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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The Group Operating Result before special items for the first six months is
EUR7.5bn despite the ongoing economic impact from the Diesel issue.

In addition, Special Items, totaling a negative EUR2.2bn, mainly related to
further legal risks predominately arising in North America, have been
included in the first half year results.  The Operating Result after
Special Items amounted to EUR5.3bn.

The key difference in the Group Operating Result before Special Items to
market expectations relates among others in particular to improvements in
the result of the Volkswagen brand in the second quarter, especially in
comparison to the weak first three months. Causal factors include demand
seasonality, the improved car market in Europe, as well as the return of
orders from large corporate fleets that we had forecasted. Positive impacts
from the efficiency programme also contributed.

With regards to the Outlook: The Volkswagen Group continues to anticipate
that, depending on the economic conditions - particularly in South America
and Russia - and the exchange rate development and in light of the diesel
issue, we expect 2016 sales revenue for the Volkswagen Group to be down by
as much as 5% on the prior-year figure.

In addition to the emissions issues, the highly competitive environment as
well as interest and exchange rate volatility and fluctuations in raw
materials prices all pose challenges. We anticipate positive effects from
the efficiency programs implemented by all brands and from the modular
toolkits.

In terms of the Group's operating profit before special items, we
anticipate that the operating return on sales will be between 5.0% and 6.0%
in 2016.

The full Half-Yearly report will be published on Thursday July 28th.


20.07.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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Language:     English
Company:      VOLKSWAGEN AG
              Berliner Ring 2
              38440 Wolfsburg
              Germany
Phone:        +49 (0)5361 9 - 49840
Fax:          +49 (0)5361 9 - 30411
E-mail:       oliver.larkin@volkswagen.de 
Internet:     www.volkswagenag.com/ir
ISIN:         DE0007664039, DE0007664005
WKN:          766403, 766400
Indices:      DAX, Euro Stoxx 50
Listed:       Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
              Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated
              Unofficial Market in Tradegate Exchange; Terminbörse EUREX;
              Luxemburg, SIX
 
End of Announcement                             DGAP News-Service
 
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