WOLFSBURG (dpa-AFX) - Audi Group reported that its operating profit for the first half of the year declined to 2.401 billion euros from 2.914 billion euros in the same period last year. The latest-quarter included special items of 265 million euros.
The special items included provisions of 133 euro million in connection with Takata airbags possibly susceptible to faults. In addition, Audi has increased its provisions for technical actions, legal risks and sales actions by 132 million euros in connection with the V6 3.0 TDI issue.
Operating profit, excluding special items, amounted to 2.666 billion euros, down from 2.914 billion euros in the prior year. The decrease compared with the prior-year period is partially due to high levels of advance expenditure, as well as currency effects. The company is putting its new plant in Mexico into operation in the second half of the year.
Revenue for the first six months increased to 30.134 billion euros from 29.784 billion euros in the prior year.
From January through June, Audi handed over 953,218 automobiles to their new owners (2015: 902,272), 5.6 percent more than in the first half of last year. The brand achieved growth in Europe, China and the United States, and thus in all core regions. Demand was stimulated in particular by the new generations of the Audi A4 and the top-end SUV, the Q7.
In the full year, the Audi Group once again plans to deliver more automobiles with the Four Rings than in the previous year. Depending on economic conditions and the development of currency exchange rates, the company also anticipates moderate revenue growth. For its operating return on sales before special items, which reflects the ongoing business, the premium manufacturer expects a figure within its strategic target corridor of eight to ten percent. Including special items, the Audi Group currently anticipates a percentage slightly below this corridor.
Copyright RTT News/dpa-AFX