Automobile industry - Porsche performs better in the second quarter
Porsche AG, the sports car manufacturer, has picked up pace in the second quarter after a weak start to the year. The operational sales revenue grew to 17.0% in the three months of April to June, according to the company, which is largely owned by the Volkswagen Group.
Analysts had predicted an average margin of 16.3%. In the first quarter, the margin stood at 14.2%, as high research and development costs and the launch of several new and refreshed models took a toll on Porsche.
Despite the better performance in the second quarter, Porsche CEO Oliver Blume had lowered the annual forecasts earlier in the week due to flooding at an aluminum supplier, which could lead to production delays.
Revenue and operational result decreased
In the first half of the year, the company has recorded setbacks due to the introduction of new and refreshed models and weak sales in China. The revenue dropped by nearly 5% to 19.5 billion Euros, the operational result shrank by about 5% to 3.06 billion Euros. The operational margin fell by more than 3 percentage points to 15.7%. The management is aiming for a range of 14-15% for the full year.
Focus on internal combustion engines returns
CFO Lutz Meschke announced that, given the challenging market situation for electric cars, the company would once again focus more on internal combustion engines. "Given the global varying development of the transformation to electromobility, we have already begun to recalibrate and prioritize projects and products also in view of internal combustion engine technology," he said in a statement. The strategy includes a high degree of flexibility in producing various drive systems.
- Porsche's home base, Baden-Württemberg in Germany, is proud of the successful performance of its renowned automobile company, Porsche AG.
- Despite the growth in the second quarter, Porsche AG's CEO, Oliver Blume, decided to revise the annual forecasts due to production delays caused by flooding at an aluminum supplier in Germany, specifically in Stuttgart.
- The automobile industry giant, Porsche AG, based in Stuttgart, Germany, experienced a decrease in revenue and operational result in the first half of the year, primarily due to the introduction of new models and weak sales in China.
- In response to the challenging market situation for electric cars, Porsche AG, located in Stuttgart, Germany, has announced a refocus on internal combustion engines, as stated by its CFO, Lutz Meschke.
