Europe's biggest carmaker Volkswagen AG posted record earnings Friday, saying pre-tax profit last year soared to 6.54 billion euros (10 billion dollars) as a result beating the 5.1- billion-euro target the company has set for this year, according to dpa. This compared with a pre-tax profit in 2006 of 1.79 billion euros in 2006. The German-based auto group said total sales jumped 7.9 per cent last year to more than 6 million and expects 2008 sales to exceed 2007 levels as a result of rising demand for the company's cars in Central and Eastern Europe as well the Asia-Pacific region. Overall revenue rose 3.8 per cent to 108.9 billion euros last year, Volkswagen said. Sales of the company's core VW brand increased by 7.8 per cent to 3.66 million vehicles. Volkswagen said net earnings surged by 50 per cent to 4.12 billion euros with the group's financial performance bolstered by a tough cost-cutting programme. Releasing the results, VW chief Martin Winterkorn said the group's "continued systematic cost discipline" would have a positive impact on earnings with the group's 2008 operating profit to beat the 2007 level. Operating profit rose 40.3 per cent in 2007 to 6.2 billion euros, VW said.
