Audi Sticks to Guidance But Warns of Impact From Geopolitical, Economic Turbulence

By Dominic Chopping

Audi backed full-year guidance as it pushes ahead with cost cuts, but cautioned that the turbulent geopolitical and economic environment is having a noticeable impact on its business.

"Certainties of the past--such as stable sales markets and predictable conditions--no longer apply," Chief Financial Officer Juergen Rittersberger said.

"We need to act urgently. We are therefore working on our cost structures and pressing ahead with efficiency measures."

The German automaker, which is part of Volkswagen Group, on Tuesday reported operating profit of 588 million euros ($687.5 million) in the first quarter, up from 537 million euros in the same period a year prior, as revenue fell 8.1% to 14.18 billion euros.

It still expects revenue this year to land at between 63 billion and 68 billion euros, with an operating margin of 6% to 8% and net cash flow of between 3 billion and 4 billion euros.

The potential impact from a further escalation in the Middle East can't currently be reliably assessed and therefore isn't included, it said.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

05-05-26 0339ET