AUDI AG after 3 quarters: pivotal financials impacted by unusual factors

Posted on 01. Nov, 2018 by in Audi Canada

“The stream conditions is an huge plea for Audi. We are intentionally rebellious a countless disastrous factors and evenly counteracting them,” says Bram Schot, temporary Chairman of a Board of Management of AUDI AG. “We are operative tough to safeguard that we can put serve indication variants behind into a operation so that we can offer a business an appropriate lineup in all indication array again by a finish of a year. In addition, a indication beginning will now constantly strech a showrooms in some-more and some-more markets. We therefore design that a stream fluctuations in a business will noticeably change out again as of November.”

As announced, a changeover to a WLTP customary in sold led to poignant fluctuations in a pivotal sum of a Audi Group. These fluctuations will during initial diminution again with courtesy to prolongation volumes. With courtesy to deliveries, accessible bonds deliberately built adult in a initial half of a year essentially led to high expansion rates in Jul and August, before pointy declines started in Sep as a outcome of restrictions in a sales portfolio. This relates essentially to Europe, a sales shred with a top volume for AUDI AG. The association delivered 1,407,718 Audi code cars worldwide in a initial 3 buliding of this year (2017: 1,380,463). While sales in Europe declined, Asia-Pacific and North America reported certain volume developments.

“We can master this well-developed proviso entrepreneurially since Audi has a strong, volatile financial base,” says Alexander Seitz, Member of a Board of Management of AUDI AG for Finance, China, Compliance and Integrity. “The Audi Transformation Plan is also holding effect: We expect certain gain effects of €1 billion already in a start-up year. This means that a money era stays clever even in severe times. We continue to financial a large upfront output for a destiny march from a possess resources.”

At €44,257 million, a Audi Group’s income for a duration from Jan by Sep was during a prior-year turn (2017: €44,028 million). Before special items, handling distinction of €3,671 million was tolerably down on a prior year (2017: €3,941 million); handling lapse on sales before special equipment was 8.3 percent (2017: 9.0 percent). The effects of a changeover to WLTP in sold had a disastrous impact on handling profit. On a other hand, there were certain effects from a light launch of a new Q5 era in vital markets and a start of a new Q8, as good as from a company’s banking management.

The excellent of €800 million imposed on Oct 16, 2018 by a Munich II Public Prosecutor’s Office final regulatory offences record associated to a diesel emanate influenced gain in a third quarter. After these disastrous special items, handling distinction for a initial 3 buliding decreased to €2,871 million and a analogous handling lapse on sales was 6.5 percent.

Profit before taxation for a Audi Group amounted to €3,458 million (2017: €3,974 million) for a initial 3 buliding of this year. This figure, that was impacted by a disastrous special items, includes a significantly increasing financial result: In a initial 9 months of a year, it rose to €586 million (2017: €33 million), partly as a outcome of a successful business in China.

Net money upsurge of €3,116 million for a initial 3 buliding was also significantly aloft than in the prior year (2017: €2,552 million). At times of high allege expenditures for new models, technologies and prolongation facilities, a tighter spending and investment fortify as partial of a Audi Transformation Plan had a certain effect. Improved working-capital government and reduce money outflows ensuing from a diesel predicament than in a prior year also contributed to a boost in net money flow.

On a quarterly basis, a code with a Four Rings delivered 458,448 cars from Jul by September, fewer than in a prior year (2017: 471,780). Revenue decreased to €13,074 million (2017: €14,017). Operating distinction before special equipment of €910 million (2017: €1,261 million) also reflects a weight from a WLTP changeover, that was generally conspicuous in a third quarter. The handling lapse on sales before special equipment was 7.0 percent (2017: 9.0 percent). After a disastrous special equipment ensuing from a excellent imposed by a Munich II Public Prosecutor’s Office, handling distinction for a third entertain was €110 million and a particular handling lapse on sales was 0.8 percent.

In a stream second half of a year, a densely packaged module of phase-outs and ramp-ups in tie with a many extensive indication beginning in Audi’s story has reached a peak. This involves high ramp-up expenses. Audi will launch a sum of some-more than 20 new or updated models in 2018. Following a launch of a Audi Q8 and a new A6 in a initial markets in a third quarter, new generations of serve core indication array will follow by a finish of a year: a Q3 and A1 in a compress segment. The long-wheelbase Audi Q2 will be accessible during dealerships exclusively in China, and a new A8 and new A7 will go on sale for a initial time in critical Asian and North American markets. The response to a Audi e-tron presented in mid-September has also been really positive: Even before a marketplace launch, some-more than 17,000 pre-reservations have already been perceived for a initial all-electric Audi SUV.

For full-year 2018, a Audi Group now still expects Audi code deliveries during roughly a same turn as final year notwithstanding a substantial fluctuations during a year. On October 16, 2018, a association announced that it would significantly undercut vital financial pivotal opening indicators forecasted for a mercantile year 2018, with care of a impact of a special equipment ensuing from a excellent imposed by a Munich II Public Prosecutor’s Office. This relates to handling profit, handling lapse on sales, lapse on investment and net money flow. In a Annual Report, a Audi Group had foresee an handling lapse on sales within a vital aim mezzanine of 8 to 10 percent for a year 2018.


Selected pivotal sum of a Audi Group

Q3 

Jan. – Sept.

2018

2017

2018

2017

Deliveries
Audi brand

458,448

471,780

1,407,718

1,380,463

Revenue
in EUR million

13,074

14,017

44,257

44,028

Operating distinction
before special items in EUR million

910

1,261

3,671

3,941

Operating lapse on sales
before special items in percent

7.0

9.0

8.3

9.0

Operating profit
in EUR million

110

1,261

2,871

3,941

Operating lapse on sales
in percent

0.8

9.0

6.5

9.0

Download Audi Group Interim Financial Report

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