Audi’s earnings in 2012 were adversely affected by the declining market in Europe so for this year, the automaker is targeting a "slight" increase in revenue for 2013. Audi said that its operating profit increased by 0.6% to 5.38 billion euros ($6.99 billion) in 2012 while the net profit decreased by 2% to 4.35 billion euros.
Revenue had grown by 11% to 48.8 billion euros. Its operating profit as a percentage of sales was at 11%, a bit higher than its long-term target range of between 8% and 10%. Audi said that it predicted to hit an operating margin at the upper end of its long-term target for this year. Audi predicts more deliveries for this year due to demand for the next-generation A3 Sportback launched last February and the S3 performance version of the model that comes out in the summer.
An A3 sedan, which is being aimed at the buyers in the U.S. and China, is expected to arrive at showrooms later this year. Audi accounted for around 40% of VW Group’s earnings, making it the primary profit driver of the VW Group.
Audi kept its target of doing better than the record last year of 1.46 million vehicle sales in 2013 and raising deliveries to over 2 million by 2020. The brand seeks to steal the top sales record from BMW in 2020. Audi CEO Rupert Stadler declined to give a specific profit forecast at the recently held Audi's annual news conference at its headquarters in Ingolstadt, Germany.
He would only say that 2013 "will be at least as challenging" as the previous year. Stadler said that the company will expand further in 2013, explaining that Audi anticipated that it will attain sales of 1.5 million units earlier than planned. Originally, Audi had sought to hit this target in 2015. Audi is struggling with the effect of a weakening auto demand in core European markets. Chief Financial Officer Chief Axel Strotbek said that western Europe’s overall development was recessive and that its financial output had shrunk.