Volkswagen posted document first-half earnings on Thursday whereas additionally elevating its goal for revenue margin.

The outcomes are a marked enchancment from the identical interval final yr when demand was ravaged on the peak of the Covid-19 pandemic.

The German automaker noticed first-half working revenue earlier than particular objects hit 11.4 billion euros ($13.5 billion), exceeding pre-pandemic ranges on the again of elevated demand for premium vehicles in Europe and the Americas, whereas electrical automobile deliveries virtually tripled.

Because of this, Volkswagen upped its revenue margin goal for the second time in three months. The corporate now expects an working return on gross sales of between 6% and seven.5%, having beforehand projected 5.5% to 7%.

“The document consequence within the first half of the yr is obvious proof of how sturdy our manufacturers are and the way engaging their merchandise are,” CEO Herbert Diess mentioned in an announcement.

“The premium phase carried out particularly nicely with double-digit returns, as did Monetary Providers. Our electrical offensive is selecting up momentum.”

The group lowered its forecast for deliveries, nevertheless, amid “difficult market situations.”

“Challenges will come up significantly from the financial scenario, the growing depth of competitors, risky commodity and international trade markets, securing provide chains and extra stringent emissions-related necessities,” it mentioned within the earnings report. Like many main automakers, Volkswagen is feeling the pinch from a worldwide scarcity of semiconductors.

Listed below are the quarterly highlights:

• Second-quarter deliveries got here in at 2.55 million automobiles, up from 1.89 million within the first half of 2020.
• Quarterly group gross sales revenues had been 67.29 billion euros, up from 41.08 billion euros for a similar interval final yr.
• Working consequence earlier than particular objects was 6.55 billion euros, up from -2.39 billion euros final yr.

Half of Volkswagen’s gross sales are anticipated to be battery-electric automobiles by 2030, the German carmaker mentioned in a current technique replace, whereas virtually 100% of its new automobiles in main markets needs to be zero-emission automobiles by 2040.

These targets are a part of Volkswagen’s wider purpose to be absolutely carbon impartial by 2050, and Volkswagen has earmarked 73 billion euros for the event of future applied sciences between 2021 and 2025, round 50% of the corporate’s complete investments.

Volkswagen inventory is up greater than 34% year-to-date.