Audi Warns of Lower Revenue As It Restructures to Boost Profitability — Update
By David Sachs
Audi expects lower revenue amid intense competition this year and warned of a potentially lower margin as the company launched a cost-savings initiative.
The Volkswagen-owned luxury-car group said Thursday that conditions look challenging in 2024 and that it launched a restructuring program aimed at attaining a long-term margin of 14%. It also stressed its intention to continue offering both electric and gas-burning vehicles as demand for electric cars balks.
The company said fierce competition and a difficult global economic situation should result in revenue of between 63 billion and 68 billion euros ($68.49 billion-$73.93 billion). Audi posted revenue of EUR69.865 billion last year.
Its operating margin is expected to finish the year at between 8% and 10%, compared with 9% in 2023, said the company, which includes the Audi, Bentley, Lamborghini and Ducati brands.
Net cash flow is also expected to fall this year, to between EUR2.5 billion and 3.5 billion from EUR4.74 billion last year.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
March 19, 2024 06:57 ET (10:57 GMT)
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