sports car builder - Porsche lowers forecast because of supply chain problems
Porsche, the sports car manufacturer, is unexpectedly lowering its sales forecasts due to flooding damage at a supplier of aluminum. The Stuttgart-based company now expects sales between 39 and 40 billion Euros instead of the previously planned 40 to 42 billion Euros.
The flooding of a production site of a major European aluminum supplier reportedly causes significant supply bottlenecks. According to the information provided by the VW subsidiary, aluminum-made body parts for cars, which are used in all Porsche vehicle series, are affected. Despite countermeasures taken, it is indicated that the impending supply bottlenecks will lead to disruptions in production.
Production disruptions are expected
"These are expected to last several weeks and could potentially lead to production standstills for individual or multiple vehicle series," it is stated. It is expected that the delays in production and delivery of vehicles resulting from this cannot be fully compensated in the further course of the business year.
Porsche is therefore also correcting its forecast for operational profit, which is the profit margin in daily business. The value is now expected to be between 14 and 15 percent - until now, Porsche had a target of 15 to 17 percent. The company had already set cautious targets for 2024, among other things due to several model changes that initially incur high costs.
Sales have declined in the first half of the year
Porsche will publish the figures for the first six months of the year on this Wednesday (24. July). Analysts had previously assumed that the automaker would meet its targets for 2024 despite the current problems on the important Chinese market. It is already known that Porsche sold fewer cars in the first half of the year, especially in China. There was a 30% decrease in sales.
- The flooding in Baden-Württemberg, Germany, has affected a significant aluminum supplier, causing concern for Porsche in Stuttgart, as they rely on aluminum-made body parts for their vehicle series.
- Due to these supply bottlenecks, the prognosis for Porsche's sales has been revised, with the company now expecting sales between 39 and 40 billion Euros instead of the previously planned 40 to 42 billion Euros.
- Oliver Blume, the head of Porsche, is also adjusting the company's forecast for operational profit, expecting a margin of between 14 and 15 percent, down from the previous target of 15 to 17 percent.
- The disruptions in production and delivery of vehicles are expected to continue, potentially leading to production standstills for individual or multiple vehicle series, which cannot be fully compensated in the remaining months of the business year.
- The aluminum vehicle construction sector, a crucial part of the automobile industry in Germany, is under strain due to these unforeseen circumstances, impacting not only Porsche but also other manufacturers reliant on this supply chain.
