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Porsche profit soars with 911 sales driving returns

Results are company’s first since its IPO last month

Porsche operating profit jumped 41% (Photo by Allison Dinner/Getty Images)

Fri Oct 28 2022 - 07:38

Porsche’s income surged in the first nine months of the year after deliveries climbed due to robust demand for high-margin models including the 911 sports car.

Operating profit jumped 41 per cent to €5.05 billion from the same period a year ago, the luxury-car maker said Friday. Revenue rose to €26.7 billion. The results are Porsche’s first since it returned to the stock market in Europe’s largest listing in a decade.

“In this volatile and difficult market environment we are demonstrating our ability to operate profitably, in particular through cost discipline and an attractive product mix, chief financial officer Lutz Meschke said in a statement.

Carmakers in Europe have been bracing for headwinds such as surging inflation and rising input costs to weigh on sales but so far, demand has been relatively resilient, especially for premium vehicles. Mercedes-Benz this week said it expects strong shipments of top-end vehicles like its G-Wagon SUV to help shield it from a worsening global economy. Still, Porsche’s parent Volkswagen earlier Friday missed profit expectations after struggling with persistent supply-chain problems.

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Porsche’s return on sales rose to 18.9 per cent in the January-September period as the company benefited from “significantly higher proceeds per vehicle and exchange rate effects.” It confirmed its guidance for the year.

Porsche became Europe’s most valuable automaker earlier this month, when its market capitalisation overtook that of VW a week after the initial public offering in Frankfurt.

The company is well ahead of peers including Ferrari and Aston Martin when it comes to electrifying its line-up. The Taycan EV outsold the 911 last year and Porsche is preparing to introduce a battery-powered version of its Macan model, with first deliveries expected in 2024.

Porsche’s deliveries in the first three quarters rose 2 per cent to 221,512 cars, with sales of the combustion-engine 911 — its most profitable model — jumping 9 per cent. — Bloomberg

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