Porsche Five-Month Earnings Triple on Surging Demand for Cayenne, Panamera
Porsche SE’s car-making division tripled profit in its shortened 2010 fiscal year as deliveries of the Cayenne sport-utility vehicle and Panamera sedan surged.
Earnings before interest and tax for the August to December period rose to 688 million euros ($960 million) from 227 million a year earlier, the Stuttgart, Germany-based company said in an e-mailed statement today. Five-month revenue increased 59 percent to 3.87 billion euros.
Chief Executive Officer Matthias Mueller aims to double global sales to about 200,000 cars and SUVs by 2018, taking advantage of resources at Volkswagen AG (VOW) following a planned combination with Europe’s biggest automaker. The German sports- car maker’s five-month deliveries rose 57 percent to 40,446 vehicles, Porsche said Feb. 28.
“Porsche is blessed with rising demand from around the world,” Daniel Schwarz, a Commerzbank AG analyst in Frankfurt who recommends buying Porsche stock, said before today’s release. “Production is running close to capacity limits.”
Five-month sales of the Cayenne, Porsche’s best-selling model, doubled to 20,770 SUVs following the introduction last year of the third generation of the model. Deliveries of the four-door Panamera advanced 44 percent to 9,385, while the 911 model increased 13 percent to 6,255.
Porsche is reporting five-month results to shift in 2011 to calendar-year reporting to align its operations with Wolfsburg, Germany-based Volkswagen. Porsche’s fiscal year previously ended on July 31.
Porsche’s next model, the Cajun compact SUV, will be based on the platform of VW’s Audi Q5 model and may come to market by about 2014. The carmaker’s supervisory board is meeting today and will vote to build the Cajun at Porsche’s Leipzig factory, a person familiar with the matter said last month.
Volkswagen gave Porsche authority last November to run sports-car development across the group. Adding Porsche as its 10th brand may help Volkswagen in its effort to overtake Toyota Motor Corp. (7203) in sales and profitability by 2018, Commerzbank’s Schwarz said.
“VW’s vast technology creates new opportunities that Porsche would otherwise not have,” according to Schwarz. “The Cajun may not yield the margin of a Cayenne but Porsche will still make it profitable.”
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