Porsche, sharp drop in the first nine months. Start of cost cutting

The transition to the electric car remains difficult for Porsche. This was confirmed by the results for the first nine months of the year, with group operating profit down 26.7% to €4.04 billion and margin down more than four points to 14.1%. Sales fell from 250,000 units to 221,000 with the Cayenne suv number one among the company's models (up 21% to 77,686) and the electric Taycan dropping 50% (to 14,000 units, it is Porsche's lowest-selling car). Revenues fell 5.2% to 28.56 billion, net profit plummeted 29.95% to 2.76.

In addition, operating profit for the third quarter fell 41% to EUR 974 million, below the EUR 1.08 billion estimated by Lseg, while sales for the period dropped to EUR 9.1 billion, with an operating margin of 10.7%.

Thus, the Volkswagen Group's sports and luxury car manufacturer warned, after announcing its financial results, that it might start a cost-cutting phase (already started in the parent company) precisely because the decline in demand for battery-powered cars (7.3 per cent share of sales, down more than four points) and the brand's persistent weakness on the Chinese market demand a change of pace.

"We are reviewing our product line and ecosystem, as well as our balance sheet and cost position. All with the aim of further increasing our flexibility and resilience," said CFO Lutz Meschke.

In China, a major market for Porsche (but down from 24% to 18% of total deliveries between Q3 2023 and Q3 2024), the group led by CEO Oliver Blume (who is also CEO of the Vw Group) is facing what Meschke called a 'structural change in demand'. A reference to the weakness that has affected all foreign car manufacturers (German, Japanese and Korean) in the world's largest car market. Put to the test by the economic slowdown caused by the crisis in the real estate sector, but above all by competition from local manufacturers, whose products appeal more to consumers.