Audi bounces back in the second quarter

Revenue in the Second Quarter Almost at Previous Year's Level

Audi is slowly fighting through its current weak phase. In the first half of the year, the company made around 1.1 billion euros less profit, and revenue dropped by 3.2 billion euros, as the VW subsidiary announced. As bleak as these numbers may seem at first glance, they show a clear upward trend, because already after the first quarter, Audi had reported declines that were only slightly lower in sum.

Revenue in the second quarter was thus almost at the previous year's level, with profit only slightly below. CFO Jürgen Rittersberger also emphasized: "The second quarter was significantly better than the first quarter. We were able to catch up." 

Optimistic Forecasts for the Third Quarter

One contributing factor was that supply issues for parts for the large V6 and V8 engines, which are mostly used in more expensive and higher-margin cars, subsided in the second quarter. "We are now very well supplied here," said Rittersberger.

In the third quarter, he expects normal production again, which will help the company not only in terms of vehicle volume but also in earnings. Specifically, revenue in the first half of the year was 30.9 billion euros, with a profit of just under 2.2 billion.

Forecast Lowered

Nevertheless, Audi lowered its profit margin expectation for the entire year. The forecast for the operating return on sales is now 6 to 8 percent - instead of 8 to 10. According to Rittersberger, the reason for this is the costs associated with the restructuring in Brussels.

The entire plant there is at risk - among other things, because the electric models produced there could potentially be discontinued prematurely. However, Audi did not provide any further details about Brussels at this time.