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Porsche surprises street with dynamite sales numbers
Luxury automaker Porsche AG estimated Friday that net profit rose by 13 per cent in the first half of its fiscal year as revamped versions of its Boxster and 911 models sold strongly.
Preliminary net profit in the Aug. 1-Jan. 31 period was estimated at 167.5 million euros ($205.2 million (U.S.)), up from 148.3 million euros a year earlier, the company said. That exceeded the prediction of 149 million euros ($182.5 million) by analysts.
Porsche issued estimated earnings even though the reporting period does not end until Tuesday. The company said pre-tax profit was up 11.3 per cent, rising to 274 million euros ($336 million) from 246.1 million euros.
Porsche said first-half sales rose 15 per cent to 3.25 billion euros ($4 billion), with unit sales rising to 41,750 vehicles.
The company said it sold 14,800 new Carrera 911 cars, a rise of more than 20 per cent. The new Boxster accounted for the strongest growth, with 9,740 vehicles sold — a gain of 155 per cent.
Sales of the Cayenne sports utility vehicle were down 12.2 per cent to 19,960 units.
Porsche said in a statement it is "optimistic" about the full year. It said it expects sales of significantly more than 90,000 vehicles, up from 88,379 in the last fiscal year.
The company added it expects a "high level of profitability" despite development costs for its new Panamera model.
Porsche does not release quarterly figures. The company's shares rose 1.9 per cent to 642.43 euros ($787.01) in mid-morning trading on the Frankfurt exchange.
Speaking at Porsche's annual general meeting, CEO Wendelin Wiedeking said his company's recent investment in fellow German automaker Volkswagen AG would play a "key role for future growth."
Stuttgart-based Porsche spent about 3.5 billion euros late last year to increase its stake in VW to 18.5 per cent, making it that firm's biggest single shareholder. The move was aimed at protecting Volkswagen, a supplier for nearly a third of Porsche's production, from any hostile foreign takeover.
"Without continuation of the successful cooperation with Volkswagen, our (business) model would be in danger, at least in the long term," Wiedeking said Friday.
"We want to contribute to Volkswagen remaining independent, for our co-operation to be mutually beneficial," he said.
Source: Toronto Star