Volkswagen AG’s Audi expects full-year operating profit to be similar to the one in 2011 due to rising costs which offset higher car sales volume.
“If economic conditions don’t substantially change, we expect higher outlays for new models, technology and assembly expansion with an operating result at the high level of the previous year,” Chief Financial Officer Axel Strotbek said in a statement.
In 2011 Audi’s operating profit rose to 5.35 billion euro, compared to 3.34 billion euro in 2010, and net profit rose to 4.39 billion euro from 2.59 billion euro. Revenue improved to 44.1 billion euro in 2011 from 35.4 billion euro in 2010. Audi managed to overtake Mercedes as the world’s second- bestselling luxury car maker after BMW AG (BMW.XE) in 2011, due to sales which rose 19% on the year to 1.3 million units.
“We plan to achieve an operating profit that will be on par with the record year 2011–despite higher expenses for new technologies and models, as well as the burden of related start-up costs resulting among other things from the expansion of our production structures,” Audi Chief Financial Officer Axel Strotbek said.