Frankfurt  - Despite high fuels costs and growing economic uncertainty, luxury German carmaker Audi said Friday it expects to report an improved business performance this year.

Audi, which is an offshoot of Europe's biggest auto manufacturer Volkswagen AG, said it expects sales to reach one million this year compared to 964,151 in 2007.

Despite surging raw materials, a weak euro and reluctant car buyers, Audi said its key operations all improved during the first half.

Audi said its first-half net profit rose by 37 per cent to 930 million euros. (dpa)