The luxury car manufacturer Audi AG, which is owned by Volkswagen AG, announced its forecasts of reaching higher sales in 2014. Audi also projected a steady growth in all regions of the world but it also warned that its revenue is expected to be influenced by both harsh climate regulation and investments made in new models.
As reported by the Wall Street Journal, the Chief Financial Officer of Audi AG – Mr. Axel Strotbek – said: “Despite this high upfront investment in our future, we want to remain within our strategic target range and achieve an operating margin of 8% to 10% in 2014.” The Chief Executive Officer of the company – Rupert Stadler – commented the companys intentions to broaden its portfolio with new models, saying for the Wall Street Journal: “The lions share of our new investment program will flow into the next stage of our product and technology offensive. In a few years we will have 60 models in our program.”
Audi AG made an official statement today, saying that its sales are expected to increase to more than 50 billion euros (69.4 billion dollars) due to expansion of its production capacity outside the brands home market. This is a precedent for the companys history.
In addition, according to data compiled by German automakers, Audi AG surpassed BMW in sales, taking the lead in luxury-vehicles sales. The company was reported to have sold a total of 242,400 cars, which is 383 more than the ones sold by BMW through the end of February this year. Audi sold 1.58 million cars in 2013, marking a 8.3% increase compared to the results posted for 2012.
Mr. Ruper Stadler said for Bloomberg: “Competition in the premium segment is more intense than ever. Were ahead of our two main rivals in the first two months, but this doesnt really interest me much. Our focus is on further growth.”
The 2013 net profit of Audi AG was reported to be 4.01 billion euros, which is 7.7% less than the figures reported for 2012. The global sales of the companys brands, however, are reported to have increased by 2.3% and reached 49.9 billion euros.
Volkswagen AG rose by 1.12% to 180.90 euros by 13:48 GMT in Frankfurt, marking a one-year change of +7.14%. The company is valued at 82.01 billion euros. The 28 analysts offering 12-month price targets for Volkswagen AG have a median target of 216.00 euros, with a high estimate of 300.00 euros and a low estimate of 160.00 euros. The median estimate represents a 20.74% increase from the previous close of 178.90 euros.
Audi AG fell by 0.70% to 633.60 euros, marking a one-year change of +9.14%.
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