The car manufacturer has high upfront costs for new models and weak sales Porsche with CEO Oliver Blume (55) brought a decline in profits in the first quarter. From January to March, the operating result fell by 30 percent to 1.28 billion euros, as Porsche announced on Friday. According to data from LSEG, analysts had expected earnings before taxes (EBIT) at this level. Sales shrank by eleven percent to nine billion euros, so that the return on sales of 14.2 percent was four percentage points lower than in the same period last year and was below the target range of 15 to 17 percent for 2024. The goal was confirmed.
Porsche explained the first drop in profits since the Corona crisis in 2020 with high investments in research and development as well as marketing costs for the introduction of new models. This year, Porsche is renewing four of its six model series: In the first quarter, the new editions of the Panamera sedan and the Taycan electric car were released, followed later by the electric Macan and the new 911. According to CFO Lutz Meschke (58), the first quarter is said to be the weakest of the year. “We gained a lot of momentum in the first quarter to lay the foundation for future success,” he explained. “After that, we’ll get going again.”
Sales in the first quarter of 77,640 vehicles were four percent lower than a year ago. A big plus Germany and North America saw a slump China balance. Porsche boss Blume had already announced a “challenging” year 2024 for the DAX group in March. After the record margin of 18 percent last year, the VW Group brand expects a return of between 15 and 17 percent with at best slight sales growth to up to 42 billion euros.