Volkswagen, Europe's biggest car maker, has said its earnings rose sharply last year on the back of cost-cutting measures and the sale of its Europcar car rental subsidiary.
VW said in a statement that net profit more than doubled to €2.75 billion in 2006 from €1.12 billion a year earlier.
Operating profit before exceptional items jumped by 51.7% to €4.4 billion on an 11.6% rise in revenues to €105 billion.
The figures were boosted in part by windfall gains from disposals such as the sale of Europcar for nearly €800m. Changes in German corporate taxes also had a positive impact of €951m, the car maker explained.
At the same time, the extensive restructuring measures and deep cost cuts also began to pay off, it said. VW expressed optimism for the current year, with unit sales projected to 'rise slightly', leading to high revenues and operating profit.
