OREANDA-NEWS. With a new record for deliveries of more than 1.74 million automobiles, Audi for the first time increased its revenue to more than €53 billion in 2014. Operating profit amounted to €5.15 billion and the operating return on sales of 9.6 percent was at the upper end of the strategic target corridor of eight to ten percent. After taking increased financial income into consideration, profit before tax increased to approximately €6 billion. The return on sales before tax was 11.1 percent. By 2020, Audi plans to expand its product range to 60 models. The brand with the Four Rings will therefore invest more than €24 billion in new products and technologies by 2019, and is continually expanding its global production network. Worldwide, the Audi Group plans to recruit more than 6,000 new employees in 2015 to strengthen its workforce with experts as it moves along its strategic growth path. The company intends to deliver more premium cars than in the previous year once again in 2015.

At the Annual Press Conference held at its headquarters in Ingolstadt on Tuesday, AUDI AG presented its key figures for financial year 2014 and an outlook for 2015. Board of Management Chairman Rupert Stadler stated, “We delivered more in 2014 than promised. After a very positive start to this year, we aim to achieve a new record for unit sales in 2015.” This year, the company will start the next stage of its model initiative with the new Audi Q7, the new Audi R8 and the new Audi A4 family.

Audi delivered a convincing performance in 2014 despite a heterogeneous market environment, and increased its unit sales in all regions. The Ingolstadt company set new records for unit sales in a total of 50 countries. Worldwide, it sold 1,741,129 automobiles of the Audi brand to its customers (2013: 1,575,480), representing an increase of 10.5 percent (2013: 8.3 percent). Audi therefore significantly surpassed its original unit-sales target of 1.7 million automobiles. The Audi Group increased its revenue to €53,787 million (2013: €49,880 million): growth of 7.8 percent compared with the previous year.

Despite high advance expenditure for the expansion of international production structures as well as for new models and technologies – in particular to fulfill increasingly strict CO2 regulations around the world – the Audi Group increased its operating profit by 2.4 percent to €5,150 million (2013: €5,030 million). At the same time, the company invested approximately €4.5 billion in 2014, nearly €1 billion more than in 2013. The operating return on sales was 9.6 percent (2013: 10.1 percent), and thus at the top end of the strategic target
corridor of eight to ten percent.

The Audi Group’s selling expenses increased at a lower rate than revenue: plus 5.5 percent to €4,895 million (2013: €4,641 million), although the company delivered significantly more automobiles to its customers and supplied its dealers with numerous new models.

Financial income of €841 million was significantly higher than in 2013 (€293 million). It includes Audi’s share of the operating profit of the Chinese joint-venture company FAW-VW Automotive Company, which is consolidated at equity. Overall, the Audi Group increased its profit before tax by 12.5 percent to €5,991 million (2013: €5,323 million). Return on sales before tax improved from 10.7 percent in 2013 to 11.1 percent last year, providing further evidence of the company’s strong profitability.

Board of Management Member for Finance Axel Strotbek stated to approximately 350 journalists in Ingolstadt: “Our key financials show that we are preparing systematically for the future and nevertheless operating very profitably.” Despite high levels of advance expenditure, the company achieved an operating return on sales at the upper end of its strategic target corridor of eight to ten percent.

From January through December 2014, Audi invested nearly 25 percent more than in the previous year, setting a new record with an amount of over €4.5 billion. By 2019, the company plans to invest a total of €24 billion. The focus will be on technical innovations and new models. In addition, the manufacturer of premium automobiles intends to expand its worldwide production structures. Once again, all investments are to be funded out of the cash flow from operating activities.

“In view of our upcoming record investment, we will continue our systematic focus on efficiency, because we want to achieve a net cash inflow of more than €2 billion in 2015,” stated Strotbek. Despite increased investment, the net cash inflow of €3.0 billion in 2014 was only slightly lower than the prior-year figure of €3.2 billion. At December 31, 2014, the Audi Group’s net liquidity amounted to €16.3 billion and was thus €1.6 billion higher than the figure of €14.7 billion a year earlier.

By 2020, Audi intends to expand its product range from the current 52 to 60 models. At the Annual Press Conference, Board of Management Member for Technology Ulrich Hackenberg explained, “The new models Audi Q7, Audi R8 and Audi A4 are the highlights of our model initiative in 2015.” The company will continue to thrill its customers worldwide with pioneering technologies and progressive automobiles with the sporty Audi DNA.