VW sees strong first-half profits despite chip shortage

BERLIN: German auto giant Volkswagen said Friday it expected to report improved sales and profits for the first half, in preliminary results ahead of an earnings report later this month.

"The deliveries to customers of the Volkswagen Group continued to recover strongly in the first half of the current year, leading to a very strong Group turnover as well as a very high operating profit," the company said in a statement.

Operating profit is expected to reach around 11 billion euros ($13 billion) in the first six months of 2021, it said ahead of its scheduled earnings report on July 29.

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It said a global shortage of semiconductors that hurt production had "shifted and will rather impact us" in the second half of the year.

The carmaker had reported first-quarter net profits of 3.4 billion euros, up from 517 million euros from January-March 2020 when the first wave of the pandemic closed showrooms and factories.

Revenues for the 12-brand group, which includes the Audi, Porsche and Skoda marques, climbed 13 percent during the same period to 62.4 billion euros.

Like other carmakers, VW has been grappling with a supply crunch of semiconductors as the pandemic boosts demand for crucial microchips also needed for consumer electronics.

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The chip shortage has forced VW to trim auto production at some plants and put thousands of workers on shorter hours, delaying car deliveries.

VW had already said in February that it nevertheless expected group revenue in 2021 to be "significantly higher" than last year, while car deliveries would also be "significantly up" on 2020.