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VW shares soar after buoyant earnings update

2016-07-20 13:05

VW UNDER-FIRE: Volkswagen is still reeling from the affects of the global emissions scandal. Image: AFP/ Scott Olson

Frankfurt - Volkswagen shares have soared after the automaker revealed that its first-half earnings before charges related to its diesel-emissions scandal were "significantly higher" than market expectations.

In an unexpected announcement on Wednesday, Volkswagen said its operating result before special items for the first six months was 7.5 billion euros despite the economic impact from what it terms "the Diesel issue."

That's up from last year's 7 billion euros and is largely due to improvements in the performance of the Volkswagen brand in the second quarter, especially compared with the weak first three months of the year.

The first-half figure excludes 2.2 billion euros in new provisions related to legal costs in North America.

Still, investors were encouraged and Volkswagen shares in Frankfurt spiked 5.2% to 134 euros.

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