Audi AG Tuesday said net profit slumped 40% in 2009 as demand for luxury cars waned amid the economic downturn, but the premium brand and key earnings contributor of Volkswagen AG (VOW.XE) is gearing up for a speedy recovery as it aims this year to return to selling more than a million cars.
"We ... plan to deliver over one million Audi vehicles to customers as early as this year, with significantly higher revenue and operating profit than in 2009," Audi Chief Financial Officer Axel Strotbek said in a statement.
Audi's net profit last year fell to EUR1.3 billion from EUR2.18 billion in 2008, while revenue dropped 13% to EUR29.8 billion from EUR34.2 billion. Operating profit declined 42% to EUR1.6 billion from EUR2.77 billion as unfavorable currency fluctuations, mainly related to sterling and the Russian ruble, added fuel to the fire. Its operating margin shrank to 5.4% from 8.1% in 2008, and the return on capital to 11.5% from 19.8%.
Audi's car sales declined to 949,729 last year after reaching a record of just over one million in 2008, the highest level it has ever achieved.
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