German automaker Porsche saw a significant 30% drop in operating profit in the first quarter of 2024 to €1.28 billion. This was due to high investments in the development of new models and in-car technologies. Despite the profit decline, the company’s revenue exceeded analyst expectations, reaching €9.01 billion.
The company remains committed to its strategy despite challenging conditions and weakening demand in China. Porsche saw a 24% decline in deliveries to the Chinese market in Q1, but it refuses to compromise on margins amid the price war there.
CEO Oliver Blume expressed confidence in the company’s strategy: “In a challenging environment, we are staying on course and resolutely pursuing our strategy.”
CFO Lutz Meschke expects Porsche’s profits and profitability to normalize to between 17% and 19% in 2025.
While Porsche saw a profit decline in Q1, it is looking to the future with optimism. The company is investing in the development of new products and technologies, positioning itself for growth in the coming years.
Sources:
- TASR report on Porsche’s Q1 2024 results: https://www.teraz.sk/najnovsie/porsche-zaznamenalo-vyrazny-pokles-pre/791095-clanok.html
- Reuters report on Porsche’s Q1 2024 results: https://www.reuters.com/business/autos-transportation/porsche-ag-posts-q1-profit-drop-ramp-up-costs-2024-04-26/
