Audi posts record results for the 2010 fiscal year, best in firm’s history

Article by Christian Andrei, on March 9, 2011

Audi AG announced that 2010 was the best year for sales in its history, with deliveries worldwide increasing by 15 percent to 1,092,411. Rupert Stadler, Audi’s Chairman of the Board of Management, said the operating profit of EUR3.34 billion indicates how profitable Audi is. He added that the company is not only growing in China, but in many regions worldwide.

Stadler said Audi is targeting more than 1.2 million deliveries to customers for the total year of 2011. During the 2010 fiscal year, revenue surged by a disproportionately high rate to EUR35,441 million (EUR29,840 million in 2009), which is an increase of 18.8 percent. Audi increased its operating profit by 108.2 percent to EUR3,340 million (EUR1,604 million in 2009).

At EUR3,634 million (EUR1,928 million in 2009), the profit before tax was 88.5 percent above that of the previous year. After tax, profit rose by 95.2 percent to EUR2,630 million (EUR1,347 million in 2009).

Audi increased its operating return on sales to 9.4 percent (5.4 percent in 2009) and return on investment also reached a new peak, at 24.7 percent (11.5 percent in 2009). Net liquidity surged by 25.5 percent to EUR13,383 million (EUR10,665 million in 2009).

Audi’s outstanding performance was mainly due to many new product launches in the past year: the new models range from the flagship A8 to the A7 Sportback and the Audi A1, which is the first Audi premium car in the subcompact segment. Axel Strotbek, a Board Member for Finance and Organization at Audi, said that the new record levels for all key financial indicators highlight the competitiveness of the Audi brand.

According to Stadler, the prospects of Audi for 2011 are good, especially that its results for whole year 2010 were better than they expected at the start of the year. Stadler added that Audi expects continued growth in overall economy in 2011, although there might be a slight decrease compared to 2010. He quipped that Audi needs to remain alert, no thanks to the risks presented by the unpredictability of the financial and raw materials markets.

For 2011, Audi was able to begin the year in a successful manner, after selling 21.6 percent more vehicles around the world in the January-February period to 186,850 units. It is also experiencing strong momentum in Europe, where sales soared by 17.5 percent to around 106,600 units from 90,686. In Germany alone, the premium carmaker posted 18.3 percent more deliveries in January-February 2011 (32,290 cars) than in the same two-month period a year prior (27,304).

In China, the German premium carmaker posted a 28.9-percent jump in deliveries in January and February 2011 to 41,122 vehicles, compared to 31,906 units sold in the same months in 2010. Audi also logged a 22.3 percent leap in deliveries in the United States to 15,565 vehicles, compared to 12,726 units delivered in the year prior.

Stadler said that Audi is aiming to deliver over 1.2 million premium vehicles around the world in 2011, building on the success and momentum in 2010 without interruption. He added that Audi is targeting an operating return on sales in 2011 at the same high level as in 2010.

Press Release

Audi Group: Best Result in Corporate History

The Audi Group has concluded the 2010 fiscal year with a record result. "The operating profit of EUR3.34 billion shows how profitable Audi is. We are growing not only in China, but in many regions around the world. The Audi brand has outpaced the growth of the overall market, especially in the United States," said Rupert Stadler, Chairman of the Board of Management of AUDI AG. "We've started the year off well and we're targeting more than 1.2 million deliveries to customers for the total year," Stadler said.

For Audi, 2010 was the best year for sales in the Company's history. Deliveries of Audi brand automobiles on worldwide markets rose last year by 15 percent to 1,092,411. Revenue rose during the 2010 financial year by a disproportionately high rate to EUR35,441 million (29,840 million)* - an increase of 18.8 percent.

The Audi Group significantly increased its operating profit by 108.2 percent to EUR3,340 million (1,604 million). The profit before tax, at EUR3,634 million (1,928 million) was 88.5 percent above that of the previous year. Profit after tax rose by 95.2 percent to EUR2,630 million (1,347 million).

The Company increased its operating return on sales to 9.4 percent (5.4 percent). Return on investment also reached a new peak, at 24.7 percent (11.5 percent).

Net liquidity increased by 25.5 percent to EUR13,383 million (10,665 million).

Record results for deliveries in more than 40 markets

In the past year Audi handed over 1,092,411 (949,729) automobiles to its customers worldwide. Sales thus rose 15.0 percent compared with the previous year. Deliveries in the Asia-Pacific sales region developed favorably. The brand with the four rings also grew in Western Europe (including Germany), and especially in the United States.

New hires total 1,200; largest investment program in company history

The Audi Group plans to invest more than EUR11 billion between 2011 and 2015 - with about EUR9.5 billion going to the development of new products and to hybrid and electromobility. More than EUR5 billion will be invested in the Ingolstadt and Neckarsulm sites in Germany.

Audi plans to continue the enlargement of its model range in the coming years at an unslowed pace. "Our attention remains particularly focused on the subject of sustainability. At Audi we believe this includes not only increasing the efficiency of our cars and the development of electric and hybrid models, but also the sustainable handling of resources," Stadler said. The brand with the four rings already offers 54 model and engine variants with CO2 emissions below 140 g/km (225.31 g/mile) - of which 17 emit less than 120 g/km (193.12 g/mile).

Highest employee profit-sharing payment in company history

AUDI AG has shared the success of the 2010 fiscal year with its employees: each of the roughly 42,500 pay-scale employees at the German sites received a profit-sharing payment averaging EUR6,513. This corresponds to roughly one and a half times the average monthly wage and is the highest payment since this profit-sharing plan came into existence.

Outlook for 2011: more than 1.2 million deliveries to customers; operating return on sales at the high level of the previous year

"The signs for 2011 are good, after a year which ended better than we expected back in January 2010. We expect continued growth in the overall economy this year, even if there is a slight weakening in comparison with the previous year," Stadler said. "Nonetheless, we have to remain alert, since the unpredictability of the financial and raw materials markets still carry a risk."

Audi has started off 2011 successfully, selling about 186,850 automobiles worldwide between January and February of this year - 21.6 percent more than during the same period of the previous year. The European markets have been exhibiting strong momentum; sales here grew by 17.5 percent to around 106,600 units (90,686). In the German domestic market alone, Audi delivered 32,290 cars to customers in the first two months of the year and thereby achieved a significant increase of 18.3 percent compared with the previous year (27,304).

Between January and February, 41,122 Chinese customers (31,906) chose Audi - 28.9 percent more than during the same period in 2010. The brand also continued to grow sharply in the United States. Deliveries here climbed by 22.3 percent to 15,565 (12,726) compared with the same period last year.

"We want to deliver more than 1.2 million Audi cars to customers worldwide during the current year, and thus build upon the success of the record year in 2010 without interruption," Stadler emphasized. "We are growing sustainably and are targeting an operating return on sales at the same high level as the previous year," Strotbek added.

Topics: audi, sales

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