Audi profit, sales soar

Audi today announced a 2014 financial year profit of more than €5.15 billion ($A7.2b), with €6540 ($A9158) of that being shared as a bonus with each of its German employees.

The 2014 results saw Audi cross several important thresholds, according to chairman Rupert Stadler, including delivering 1.74 million cars and lifting its revenues beyond €53 billion ($A74b) for the first time in its history.

Stadler confirmed Audi’s plans to expand its range from 52 to 60 models, backed up by a commitment to invest €24 billion ($A33.6b) in research and development and new product by 2019.

The timing reflects an expected surge in powertrain technologies being transferred into production in time to meet the EU’s 95g/km fleet average CO2 limit, which will be introduced in 2020.

“We delivered more in 2014 than promised. After a very positive start to this year, we aim to achieve a new record for unit sales in 2015,” he announced.

Audi spent €4.5 billion ($A6.3b) on research, development and production facilities in the 2014 calendar year, which was a 25 per cent jump over its 2013 spending. It has no plans to borrow for its investments, though, preferring to fund them out of its “operating activities”.

“Our key financials show that we are preparing systematically for the future and nevertheless operating very profitably,” Board of Management Member for Finance, Axel Strotbek, said yesterday.

“Despite high levels of advance expenditure, the company achieved an operating return on sales at the upper end (9.6 percent) of its strategic target corridor of eight to 10 percent.”

Its operating profit represented a 2.4 per cent rise from the 2013 figure of €5,030 million, while it set sales record in 50 countries and it expects its 2015 figure to fall into the same eight-to-10 per cent corridor.

The Audi Group’s before-tax profit rose 12.5 per cent to €5,991 million, while its return-on-sales before tax rose 10.7 percent from 2012 to 2013 and 11.1 per cent last year.

The Audi Group sold 1,741,129 cars in 2014, for a rise of more than 10 per cent and passing its 1.7 million-car target. 1,575,480 of those branded with Audi’s badge while the rest include Lamborghini, quattro GmbH and Ducati.

As part of its expansion, Audi plans recruiting another 6000 workers worldwide in 2015 and is targeting another record sales year on the back of the new Q7, R8 and A4 models.

“We recruited about 4500 new employees in Germany,” said Thomas Sigi, Audi Board of Management Member for Human Resources.

“With their know-how, we will shape the mobility of tomorrow and will provide new impetus.”

While the German additions were focused on adding to construction, connectivity and electrical expertise, Audi recruited 5732 employees around the world, taking the total figure up to more than 80,000.

“This success is due also to the commitment and creative ideas of our employees,” Sigi insisted, explaining the bonus payment to German workers.

“In an economically challenging year, they consistently continued our product and technology offensive. Whoever shows such commitment should also profit personally from the company’s success.”

For all that, though, the €6540 bonus payment was lower than the 2013 figure of €6900, with Sigi explaining the reduction was due to the increased number of workers. The company also uses part of its profit to sharing to add to workers’ pensions.

“In view of our upcoming record investment, we will continue our systematic focus on efficiency, because we want to achieve a net cash inflow of more than €2 billion in 2015,” Strotbek said.

Audi’s cash stockpile rose, too, and the company was sitting on a pile of money €16.3 billion high at the end of the year, up from €14.7 billion leading into the year.