Volkswagen bucks the trend, Q2 operating profit up 30%; shares rise 2%

VW said it continues to expect an operating return on sales in the passenger cars area and the group of between 6.5% and 7.5%

Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins.

Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling.

Daimler, Aston Martin and supplier Continental warned on profits this week.

“Very solid and clean set of numbers, marginally ahead of consensus,” Jefferies analyst Philippe Houchois said about Volkswagen’s earnings in a note on Thursday.

The Wolfsburg, Germany-based company’s operating profit rose