Porsche AG Warns of Cost Cuts

FRANKFURT (Reuters) – Luxury sportscar maker Porsche AG on Friday warned it may cut costs due to a slower-than-expected transition to electric vehicles and ongoing weakness in the Chinese market, which has led to a decline of more than 25% in nine-month operating profit.

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Key Statements

Porsche AG CFO Lutz Meschke stated, "For this reason, we are reviewing our product line-up and ecosystem, as well as our budgets and cost position. All with the aim of increasing our flexibility and resilience even further."

Financial Performance

• Operating Profit: Declined by 26.7% to €4.04 billion ($4.37 billion)
• Sales: Fell by 5.2% to €28.56 billion

In China, Porsche's most important market, the company is encountering a "structural shift in demand," referring to the persistent weakness affecting all European carmakers.

Q3 Results

• Operating profit dropped 41% to €974 million, below the €1.08 billion estimate.
• Sales in Q3 fell to €9.1 billion, leading to an operating margin of 10.7%.

($1 = 0.9240 euros)