Porsche profit soars with 911 sales driving returns

Europe

Porsche’s operating profit jumped 41 percent to 5.05 billion euros ($5 billion) in the first nine months from the same period last year partly due to exchange-rate effects and healthy sales of its iconic 911 model, the sports-car maker said in a press release.

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

The company did not raise its full-year guidance, suggesting the current quarter may be more challenging.

“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.

Automakers have been bracing for surging inflation and rising input costs to weigh on sales but demand has been relatively resilient so far, especially for premium vehicles.

Mercedes-Benz this week said it expects strong shipments of top-end models to help shield it from a worsening global economy.

Still, Volkswagen Group missed profit expectations on Friday after struggling with supply-chain problems, and Ford this week trimmed its profit forecast because of shortages and higher payments to suppliers.

Porsche declined as much as 3.8 percent in Frankfurt. The company launched its IPO late last month in Europe’s largest listing in a decade.

“Given the tiny free float, any negative movement in the market will be exaggerated for Porsche,” said Michael Dean, an analyst at Bloomberg Intelligence.

Porsche became Europe’s most valuable automaker earlier this month when its market capitalization 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 lineup.

The Taycan EV outsold the 911 last year and Porsche is preparing to introduce a full-electric version of its Macan model, with first deliveries expected in 2024.

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