Usually the financial results of the first financial quarter of the year are released in early April, but as a result of the Volkswagen emissions scandal, the Volkswagen group’s finances were delayed as they attempted to configure them with the fallout from the scandals expenditures. So, as Audi have just recently released their own financial information, how well did they perform in the first financial quarter after the scandal emerged?
Well, the German luxury car manufacturer performed extremely well considering all that has recently happened. Audi have stated that they have had a very successful first quarter, and looking at the figures, they certainly have. Audi managed to generate revenue of €14,511 million. Although, this is one percent lower than the first financial quarter of 2015, the company certainly have managed to ensure that the Audi name has not been tarnished by the emissions scandal.
Audi’s operating profit hit €1,202 million, which much like the revenue is an extremely good figure. But alongside this, Audi stated that €100 million was put aside for negative special items. These negative special items probably relate to some emission scandal and Takata airbag recall issues. Therefore, if Audi didn’t have the special negative items, the operating profit would have been €1,302 million.
Audi’s operating return was also where they wanted it to be. Returning 8.3 percent, the company managed to reach their 8-10 percent strategy target for the first financial quarter.
By selling 455,754 vehicles, Audi also managed to increase the amount of vehicles sold by four percent on last year’s first financial quarter. So, in regards to the losses, this has occurred as a result of two things. Firstly, the negative special items caused a rather large dent in profits. Secondly, Audi have invested heavily this year. By creating the Q2, introducing the Q7 and the A4 into foreign markets as well as opening a new production plant in Mexico, money is being spent in order to make more profits later. We are going to have to see if these investments have actually worked at the end of this year.