AUDI AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
29.10.2008
Interim report according to Article 37x of the WpHG
---------------------------------------------------------------------------
Audi Group maintains successful course in the third quarter
Economic development
The global economy saw its growth momentum slump during the course of 2008.
It came under pressure in particular from the international financial
crisis, which escalated dramatically in the third quarter.
While economic development in the U.S. has nosedived particularly in recent
months, the Western European economy has already been experiencing a
decline since the early part of the year. The signs of a downturn have
become more marked in Germany, too. After experiencing high growth in the
first half, certain emerging economies in Asia, Central and Eastern Europe
and South America are equally beginning to detect an economic slowdown.
Worldwide demand for cars slipped considerably in the third quarter of
2008, on the back of slower growth in the first half of the year. The car
market in certain industrial nations experienced a sharp drop in sales,
while market growth in emerging economies held up, albeit with less vigor.
In the U.S., car sales to September were down almost 13 percent on the
corresponding prior-year figure. Registrations of new cars in Western
Europe weakened above all as a result of the sharp fall in new
registrations in Spain, Italy and the UK, whereas the German car market was
up slightly on the low volume for the prior-year period.
Vehicle sales
Audi Group vehicles remained very popular during the period January through
September 2008. Vehicle sales increased by 1.6 percent to a total of
934,342 (919,716) units.
Despite increasingly difficult market conditions, sales of Audi brand
vehicles continued to rise, climbing by 2.9 percent to a new record high of
762,289 (741,106) units.
In the home market Germany, vehicle sales were on a par with the previous
year at 186,464 (186,441) units.
In Western Europe (excluding Germany), vehicle sales bucked the general
market trend by rising 0.6 percent compared with the previous year to
320,372 (318,589) vehicles. The development in the UK was particularly
pleasing, with vehicle sales there rising to 84,916 (82,862) units.
Demand likewise held up in Eastern Europe. Vehicle sales in the Russian
growth market increased by 13.9 percent to 13,220 (11,608) units.
The Company achieved a growth rate well into double figures in China (incl.
Hong Kong). The Audi brand succeeded in cementing its pioneering role in
the premium
segment with a 19.4 percent rise in unit sales to 90,934 (76,168) vehicles.
In Japan, too, more Audi vehicles were delivered to customers than in the
prior-year period, with the total rising to 11,754 (11,321) units.
In the intensely competitive U.S. market, vehicle sales defied the
generally downward market trend to remain virtually on a par with the
previous year's excellent sales performance, at 65,818 (68,478) Audi
vehicles.
New models appearing in rapid succession
The brand with the four rings maintained its model initiative in the first
three quarters of 2008. Models such as the Audi A4 Avant launched in the
first half, the completely new Audi A3 Cabriolet and the additions of the
Audi TTS and Audi TT 2.0 TDI quattro to the TT range captivated customers
all over the world.
Audi continued to expand its product range systematically in the third
quarter of the year. In July, the product improvement of the Audi A3 and
Audi A3 Sportback
as well as the sporty version, the S3 Sportback, made a successful market
entry. The Audi A3 1.9 TDI e is a particularly economical version, with
combined-cycle fuel consumption of just 4.5 liters of diesel fuel. The
vehicle thus achieves CO2 emissions of just 119 g/km.
The updated, refined Audi A6 car line appeared on the market in the late
summer. Thanks to innovative technologies, the fuel consumption figures for
the new models were cut by an average of around 15 percent. The Audi A6 2.0
TDI e in particular, with average fuel consumption of just 5.3 liters of
diesel fuel per 100 kilometers and CO2 emissions of only 139 grams per
kilometer, will be among the best in its class.
The Company yet again caused a stir with the unveiling of the new Audi Q5
in Beijing and Paris. The new model has fired the imagination of customers,
dealers and journalists worldwide in equal measure. This attractive premium
SUV will be gradually launched onto markets from November 2008.
Finance
The Audi Group's business performance remained successful in the third
quarter of the year, as reflected in the renewed improvement of its net
worth, financial performance and financial position.
Despite persistently unfavorable exchange rates, the Company boosted
revenue by 2.1 percent to EUR 25,799 (25,260) million.
The operating result was increased by 13.6 percent to EUR 2,059 (1,813)
million, thus easily outstripping the rise in revenue. This clearly
reflects the lasting impact of the improved processes and ongoing
cost-cutting measures.
The Group did not change in the period under review.
Outlook
In view of the increasingly tight situation in major car markets, the Audi
Group expects overall worldwide car markets to decline for 2008 as a whole.
The markets of Asia and Central and Eastern Europe will continue to grow,
but at a slower rate than previously. However, the rising sales volume in
emerging markets will not suffice to compensate for the anticipated
downturn in sales in the U.S. and Western Europe.
General risks could arise for the automotive industry should the unstable
situation on the refinancing markets persist, which would impair the entire
value chain and in particular sales financing. In such a situation, the
Audi Group would nevertheless benefit from the Volkswagen Group's solid
overall liquidity situation and conservative refinancing policy.
Even if no company can ever completely avoid the effects of general market
developments, the Audi Group has taken comprehensive steps in recent years
to safeguard its longterm performance despite the difficult economic
conditions. These measures include in particular rejuvenating and extending
the product range, developing new markets and market segments, optimizing
product costs, and systematically focusing on qualitative growth.
As long as there is no dramatic change in the wider economic picture as it
currently stands, the success of these measures will be reflected in an
improvement in key performance indicators by the end of the year. Based on
the healthy development in vehicle sales in the first three quarters and
despite the increasing volatility of the sales markets and a considerably
intensified risk situation, the Audi Group expects to end the year with a
new record total of one million Audi vehicles delivered. Bearing in mind
the planned rise in volume, a corresponding increase in revenue and
earnings is moreover to be expected.
Personnel changes
There were no personnel changes on the Board of Management and Supervisory
Board of AUDI AG in the period under review.
Disclaimer
This Third Quarter Report contains forward-looking statements relating to
anticipated future developments. These statements are based upon current
assessments and are inherently subject to risks and uncertainty. Actual
events could differ from the statements formulated herein.
DGAP 29.10.2008
---------------------------------------------------------------------------
Language: English
Issuer: AUDI AG
-
85045 Ingolstadt
Deutschland
Internet: www.audi.de
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-IRE: AUDI AG:
| Source: EQS Group AG