The economy is weakening – not just in Germany. But luxury continues to sell, so Porsche is sticking to its annual targets. The Stuttgart-based company is hoping for a new electric model in 2024.
Despite the problems in China and isolated delivery problems, the sports car manufacturer Porsche is staying on course for its annual targets. In the third quarter, the Stuttgart-based company did more business than experts expected, even if profitability was somewhat weaker than expected. High demand, sales prices and the trend towards more expensive cars played into the company’s hands, said CFO Lutz Meschke, according to the announcement.
Sales in the first nine months climbed by 12.6 percent year-on-year to 30.1 billion euros, as the company, which is majority owned by the Volkswagen Group, announced. Experts had expected a less severe increase. The operating result rose by nine percent to 5.5 billion euros. Earnings after taxes rose from 3.7 billion to 3.94 billion euros.
Meschke spoke of a strong result given extensive investments in the brand and technology. “We are benefiting from continued high demand and positive product mix and price effects.” The company confirmed its annual forecast, “although the macroeconomic situation remains challenging,” as the company said.
Unless the global and supply situation worsens significantly, management expects sales of between 40 billion and 42 billion euros. 17 to 19 percent of this should remain as operating profit. In the long term, the Stuttgart team is aiming for 20 percent.
Difficult economic situation in China
As already known, Porsche delivered almost 243,000 cars to customers between January and September, almost ten percent more than a year earlier. Things went well for the flagship model 911. For the Taycan electric sports car, Porsche turned the loss from the first six months into a plus in the third quarter. However, in the important market of China, sales fell by twelve percent due to the difficult economic situation.
Several new models are expected to go to customers next year, including the new version of the Macan compact SUV. The car, which will then also be offered as a fully electric version, is considered a possible bestseller in the electric sector. Problems at the VW software subsidiary Cariad delayed the start by several years. Porsche and VW CEO Oliver Blume has therefore reorganized software development for the car. Porsche is planning premieres in four model series in 2024.