BERLIN -- Audi cut its revenue forecast for the year, blaming volatile currency markets, The automaker forecast that its revenue will stagnate compared with 2015 due to "challenging" conditions.
The pessimistic outlook from Volkswagen Group's flagship luxury division came a day after it scaled back its profitability forecast.
Audi said that 2016 revenue may now be on a par with last year's 58.4 billion euros ($63.76 billion), whereas it had previously forecast a moderate increase.
Audi's nine-month operating profit adjusted for special items plunged by a quarter to 3.03 billion euros, compared with the year-earlier period, the automaker said in a statement Friday. Its operating margin shrank to 6.9 percent, well below Audi's 8 to 10 percent target range.
In the UK, Audi's No. 2 European market, the weakening pound is causing problems, but volatility in other foreign exchange rates also contributed to the weaker sales outlook, a company spokesman said, without being more specific.
"The conditions our company faces are currently very challenging," CEO Rupert Stadler said.
The carmaker said on Thursday its profitability benchmark would fall "considerably" below the 8 to10 percent target this year after announcing 620 million in new risk provisions.
Audi had already set aside 132 million euros for costs of the diesel-emissions scandal in the second quarter. Year-to-date, its provisions for this now total 752 million euros, and it has set aside another 133 million for possible recalls of cars fitted with Takata airbags.
Porsche raises profit outlook
While Audi, which developed and built the 3.0-liter engines fitted in 85,000 polluting cars in the U.S., is facing tough times, VW stablemate Porsche raised its profit outlook.
The second-largest contributor to VW Group profit said it now expects underlying earnings to slightly exceed last year's 3.4 billion euros after previously guiding for operating profit to at least match the year-earlier result.
Despite upfront spending on its first all-electric model, the sports-car maker reported a 12 percent gain in nine-month profit to 2.9 billion euros, benefiting from strong demand for its 911 model line and the Macan SUV.