Half year income at Porsche Automobile down to $2.33 billion

Admin I Wednesday, July 24, 2024

 

BERLIN – Profits decreased in the first half of the year at Germany’s Porsche Automobil Holding SE, the firm reported on Wednesday, mainly due to decreased revenue, elevated costs, and expenses.

The group, the major shareholder in Volkswagen, also noted that its sales revenue was impacted by lower product availability and a value over volume strategy in China.

However, the company benefited from increased pricing and foreign exchange, which limited a further decline in earnings and revenue.

For the six-month period, the automobile company recorded a net income of €2.153 billion ($2.33 billion) or €2.36 per share, lower than €2.768 billion or €3.03 per share posted for the same period last year.

Profit before tax stood at €3.095 billion as against €3.982 billion a year ago.

Operating profit slipped to €3.061 billion from the previous year’s €3.852  billion.Distribution expenses were €1.379 billion, up from €1.293 billion in 2023.

Administrative expenses stood at €952 million, compared with €875 million last year. Deliveries to customers fell by 6.8% year-on-year, to 155,945 cars.

Sales revenue was €19.457 billion, lower than last year’s €20.431 billion.

Citing a significant supply shortage of special aluminium alloys, Porsche now expects annual sales revenue of €39 billion to €40 billion, down from its earlier outlook of €40 billion to €42 billion.

Return on sales is now projected to be in the range of 14% to 15%, versus the previous expectation of 15% to 17%.