By Moses Ebosele –
For the first six months of 2016, Audi Group delivered more than 950,000 automobiles of the Audi brand worldwide and “increased its revenue to €30.1 billion”.
In its first half of the year financial statement released on Friday, Audi explained that operating profit amounts to approximately €2.7 billion before special items, representing an operating return on sales of 8.8 percent, “Earnings were reduced by special items totaling €265 million”.
Chairman of the Board of Management of AUDI AG, Rupert Stadler, in a statement said
“Despite challenging conditions, we demonstrated the strength of our business operations in the first half of the year,”
He added: “We are building on our strong core business and develop new business areas that megatrends such as digitization open to us. We are investing in sustainable products and developing answers for the questions of urban mobility.”
According to the Auto Firm, renewed growth in deliveries underscores the attractiveness of the Audi brand. “From January through June, Audi handed over 953,218 automobiles to their new owners (2015: 902,272), 5.6 percent more than in the first half of last year. The brand achieved growth in Europe, China and the United States, and thus in all core regions. Demand was stimulated in particular by the new generations of the Audi A4 and the top-end SUV, the Q7.
“The Audi Group’s revenue for the first six months increased to €30,134 million (2015: €29,784 million). Operating profit excluding special items amounted to €2,666 million (2015: €2,914 million), representing an operating return on sales of 8.8 percent (2015: 9.8 percent).
“The decrease compared with the prior-year period is partially due to high levels of advance expenditure, as well as currency effects. The company is putting its new plant in Mexico into operation in the second half of the year.
“Including special items of €265 million, the Audi Group’s operating profit for the first half of the year amounts to €2,401 million (2015: €2,914 million) and its operating return on sales is 8.0 percent (2015: 9.8 percent). The special items include provisions of €133 million in connection with Takata airbags possibly susceptible to faults. In addition, Audi has increased its provisions for technical actions, legal risks and sales actions by €132 million in connection with the V6 3.0 TDI issue.
“The Audi Group’s financial result reflects the volatile development of global interest markets in the form of negative one-time effects. Influenced by this impact, the company achieved profit before taxes of €2,190 million in the first half of the year (2015: €3,150 million); profit after taxes amounts to €1,682 million (2015: €2,429 million).
“The net cash inflow for the first half of the year increased to €2,085 million (2015: €1,747 million). Net liquidity rose to €17,150 million (2015: €16,420 million)”.
Axel Strotbek, Member of the Board of Management for Finance and IT, said: “We are making use of the financial strength of the Audi Group and shape our future with our own earnings. We will further increase our advance expenditure in the second half of the year.”
*Contact Editor through Citybusinessnews@yahoo.com