Audi Group: record first-half operating profit of over EUR 1.3 billion
- EUR 17.6 billion revenue for first half up 21 percent on previous year
- Operating profit over EUR 1.3 billion in first half-year
INGOLSTADT, Germany, Jul 30, 2010 – The Audi Group increased its revenue by 21 percent in the first six months of the current fiscal year to EUR 17.6 (2009: 14.5) billion. Meanwhile the 61.6 percent rise in operating profit easily outstripped revenue growth, setting a new Company record for the first half-year of more than EUR 1.3 billion (EUR 823 million).
The Audi Group clearly benefited from the worldwide recovery in demand and its attractive model range. In the first six months of the fiscal year, deliveries by the Audi brand rose to a new record high of 554,939 (465,804) cars. This represents an increase of 19.1 percent on the previous year. “Compared with the record year of 2008, which is our real benchmark, we have achieved 7.5 percent growth,” emphasized Peter Schwarzenbauer, Member of the Board for Marketing and Sales at AUDI AG.
In the first half of the year the Audi Group recorded revenue of EUR 17.6 (14.5) billion, an increase of almost 21 percent. This is a higher rate than the growth in deliveries. The Company improved its operating profit by 61.6 percent to more than EUR 1.3 billion (EUR 823 million), and therefore by a much steeper rate than its revenue. “The record profit reflects just how successful our strategy of sustained, profitable growth is,” said Axel Strotbek, Member of the Board for Finance and Organization at AUDI AG. “Another example is our operating return for the past few years. Despite the crisis, it has averaged a good seven percent,” continued Strotbek.
In the year in progress the Company is also investing substantial amounts in new products and future technologies, mainly in the areas of electric mobility and lightweight construction. Twelve new models in total will be appearing on the market in 2010, including the A1 entry-level model and the A7 Sportback.
All investment spending was again met entirely from the Company’s own resources, with even a sur remaining. The net cash flow rose by a substantial 36.2 percent to EUR 1.9 (1.4) billion. “That impressively confirms the enduring financial strength of the Audi Group,” said Strotbek. The sound financial basis of the Company is also evidenced by the 10.6 percent rise in net liquidity to EUR 11.8 billion in the first half.
The Audi Group is also confident about its prospects for the year as a whole: “We want to increase deliveries to customers to over 1,080,000 vehicles this year,” said Schwarzenbauer. This is equivalent to growth of 13.7 percent compared with the previous year, when Audi delivered 949,729 cars. “We are once again aiming for an outstanding result for 2010, with our operating return on sales reaching the same level as the first half-year,” added Strotbek. The latter ratio was 7.6 (5.7) percent for the first six months of the fiscal year.
* Prior-year figures are in parentheses