Porsche had already set conservative sales and profit targets for 2024. Nevertheless, the carmaker now has to make downward adjustments. What is behind this surprising step?
Sports car manufacturer Porsche has had to unexpectedly lower its forecasts due to flood damage at an aluminum supplier. The Stuttgart-based company now only expects sales to be between 39 and 40 billion euros. Previously, Porsche management, led by CEO Oliver Blume, had budgeted for revenues of between 40 and 42 billion euros for the current year.
The flooding of a production facility belonging to an important European aluminum supplier is currently causing significant supply bottlenecks. “This affects body components made of aluminum that are used in all vehicle series manufactured by Porsche,” the VW subsidiary said. Despite countermeasures taken, it is becoming apparent that the impending supply bottlenecks will lead to disruptions in production.
Production stoppages threatened
“These are expected to last several weeks and may lead to production stoppages for one or more vehicle series,” it says. It is expected that the resulting delays in production and delivery of vehicles cannot be fully compensated for in the further course of the financial year.
Porsche is therefore also correcting its forecast for operating profit, i.e. the share of profit from day-to-day business in sales. The figure is now expected to be between 14 and 15 percent – Porsche had previously targeted a margin of between 15 and 17 percent. The group had already set itself cautious targets for 2024 – partly because of several model changes that will initially incur high costs.
Sales fell in the first half of the year
Porsche plans to publish its figures for the first six months of the year this Wednesday (July 24). Analysts had previously assumed that the carmaker would be able to meet its targets for 2024 despite the current problems in the important Chinese market. It is already known that Porsche sold fewer cars in the first half of the year, especially in China. Sales there fell by a third.
Source: Stern
