The sports car manufacturer Porsche wants to defend himself against the crisis with intensive measures. For this, the Stuttarters will take a lot of money this year …
This is intended to develop new cars with combustion engine or plug-in hybrid drives and offer more special and exclusive equipment. CEO Oliver Blume accepts a considerable absorption of the operational margin, as the VW concert daughter announced surprisingly on Thursday evening. According to the provisional figures, the company was already under considerable pressure last year. The management promised a stable dividend.
Analyst sees the necessary changes
Investors have hardly enjoyed the share for some time. The Recordrally after the IPO in September 2022 lasted only a few months before the record height was reached at a good 120 euros in May 2023. Then it went down, currently the share certificate is only worth about half like in its best times and it is one Good quarter below the issue price of 82.50 euros.
JPMorgan analyst Jose Asumendi spoke in a first reaction of necessary changes. They are a positive step with regard to the drive strategy and have made it possible for the car manufacturer to return to growth in the next two years. He concluded his expectations of the profit because of the coming financial charges.
Margin keeps sliding
This year the margin will probably slip to ten to twelve percent because of the expensive program to strengthen income in the short and medium term, but also because of market -related sales expectations.
For the current year, management expects the measures to be exposed to financial resources in the automotive sector (Netto -Cashflow Auto) -ie
Porsche actually has totally different ambitions: in the long term Blume wants to earn more than 20 percent return on sales. In addition to Audi, the sports cars brand was a large number of income in supporting the Volkswagen Group. Volkswagen as a group even had to stop his profit forecast twice in 2024. A spokesperson for the VW group did not want to comment on Porsche’s communication on Thursday evening. Analysts recently expected the situation in the group in the fourth quarter to improve somewhat.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
