Audi continues on profitable growth trajectory

Ongoing investment offensive for new models, innovative technologies and expansion of worldwide manufacturing structures have now become the order of the day with Audi automaker.

Despite challenging conditions and a record investment programme, Audi delivered a convincing performance in the first half of 2014, with solid key figures. In the period of January through June, the Ingolstadt-based carmaker set a new record with deliveries of 869,355 Audi vehicles.

The Audi Group posted first-half revenue of €26.7 billion and operating profit of €2.7 billion. In the first six months of this year, the company achieved an operating return on sales of 10 percent and was thus at the upper end of its strategic target corridor of 8 to 10 percent.

Reacting to the development in Munich, Axel Strotbek, the chief finance officer, stated: “Despite major challenges, Audi is systematically continuing along its path of high-quality growth.” Audi appeals to customers with its attractive model portfolio.

The company therefore expects to deliver significantly more than 1.6 million cars of the brand with the four rings this year, once again breaking the prior-year record. From January through June, Audi Group delivered to customers 869,355 units representing an increase of 11.4 percent when compared with 780,467 under the same period last year.

The company sold 50 percent more units of the new A3 family than in the first half of last year. At the same time, the large models A6, A7, Q7 and A8 together recorded an increase in unit sales of 10.1 percent.

Due to the growth in vehicle deliveries, revenue increased despite negative currency effects by 5.8 percent to €26.69 million as against the 2013 half year record of €25,234 million. As a result of the volume growth as well as higher research and development expenditure for groundbreaking technologies and new products, the group’s cost of sales in the first six months of this year increased by 8.3 percent to € 21,87 million when compared with half year revenue of €20,19 million last year.

The chief finance officer stated that Audi is currently making substantial advance expenditure that will pay off in the medium and long term. This is why it approved the biggest investment program in the company’s history at the end of last year.

By 2018, a total of approximately €22 billion will flow into new models, technologies and the continuously expanding worldwide production network. From January until June 2014, Audi invested €1,552 million in its business operations as against 2013 profile of €1,240 million; 25 percent more than in the prior-year period.

Group intends to grow in all regions of the world and to strengthen its leading position in both Europe and in China. Depending on the economic conditions, the brand expects to post revenue growth in full-year 2014.