Audi Maintains Higher Profit Margin Than BMW and Mercedes-Benz Despite Increased Costs - Moves Up Sales Target 2 Years

BERLIN, Nov 4 (Reuters) - German luxury-car maker Audi stuck to its full-year profit target even as higher costs of plants and technology inflicted a double-digit drop in third-quarter earnings.

The Volkswagen-owned division is pushing costly overseas expansion, adding capacity in China, Mexico and Brazil as the brand aims to topple luxury-sales champion BMW by the end of the decade.

Audi reaffirmed its goal to achieve an operating profit margin "at the upper end" of a target range between 8 percent and 10 percent this year, even as third-quarter operating profit plunged 17 percent to 1.10 billion euros, missing the lowest estimate of 1.13 billion euros in a Reuters poll.

However Audi's third-quarter operating margin of 9.4 percent beat the 7.3 percent return on sales at Mercedes.

BMW will report third-quarter figures on Tuesday.

Audi, based in Ingolstadt, Germany, also stood by a goal to hit its sales target of 1.5 million cars and SUVs in 2013, two years early.
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Car4Life - 11/6/2013 7:20:07 AM

0 Boost

Well...when your sharing Jetta, Passat, and Touareg platforms...one would assume cost to be less boosting profits

amgs65 - 11/6/2013 5:20:11 PM

+1 Boost

Weird how you omit Porsche to frame your narrow argument.

GermanNut - 11/6/2013 4:46:16 PM

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Platform/part sharing is great for Audi's bottom line and I expect Audi to continue dominating the profitability wars just as it has been doing for years.

amgs65 - 11/6/2013 5:23:18 PM

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Funny, when BMW collaborates with Toyota is is "strategic" and "sound", but when Audi does this it is suddenly "cheapening the brand". At least Benz, Porsche and Audi have halo cars like the SLS, GT3 and R8, what exactly does BMW have?

amgs65 - 11/6/2013 5:23:33 PM

+1 Boost

*it is