Sports car manufacturer is keeping solidly to its course of value-creating growth

Porsche AG can look back on a very successful first half of 2014. Deliveries covering the period from the beginning of January to the end of June rose by eight per cent compared with the same period last year to 87,803 vehicles. Revenue went up in the first six months by 16 per cent to 8.2 billion euros. Operating profit grew by eight per cent to 1.4 billion euros, which is equivalent to a return on sales of 17 per cent.

As at 30 June 2014, staff levels reached the record number of 21,326 employees. This is 18 per cent, or 3,178, more than a year ago.

Lutz Meschke, Member of the Executive Board Finance and IT at Porsche AG, emphasised the efficient organisation and the high cost awareness within the company. This is the only way to sustainably achieve a return on sales of at least 15 per cent. In his outlook, Meschke pointed out the rising pressure caused by the ambitious investment program which Porsche is implementing in its Strategy 2018. “The resulting depreciation and rising labour costs pose an ever increasing burden on our results. Add to this the very high expenditure for research and development, in particular in connection with reducing fleet carbon emissions.”

Despite this, Meschke confirmed that Porsche intends to achieve at least the same level of results in fiscal year 2014 as in the previous year.

The extensive investment program was visible at all locations in the first half of 2014. In February, the sports car manufacturer opened a comprehensive factory in Leipzig with its own paint shop and body assembly line for production of the Macan.

Porsche invested over 500 million euros here. Two weeks ago, the opening ceremony of a new design studio and high-tech wind tunnel took place at the Research and Development Centre in Weissach. Together with the new electronics integration centre, investment at the Weissach location totals about 150 million euros.

Early this year, work started in Zuffenhausen in Stuttgart on the first construction phase of a new training centre, an engine factory and office and service buildings. Total investments at the main Porsche plant, which includes a new body assembly line, will amount to over 700 million euros in the coming years.

Chairman of the Executive Board of Porsche AG, Matthias Müller, emphasised that the sports car manufacturer is keeping solidly to its course of value-creating growth. “We are investing in ground-breaking future technologies such as plug-in hybrid drive, and in promising market segments.” As an example, the Macan has been launched in the high-growth SUV segment.

Müller is convinced that Porsche is “absolutely on the right path with its enormous efforts”. As proof, the Chairman of the Executive Board highlighted the top quality of the company’s sports cars. In a quality study presented by US market research institute J.D. Power in June 2014, Porsche rates number one in the overall assessment, as in the previous year. The Panamera is also the best rated car in the entire study. The 911 leads the “Mid-size Premium Sports Car” segment. The Boxster reached first place in the “Compact Premium Sports Car” segment. “These ratings are our affirmation but also our incentive,” said Müller.

One result of this quality strategy, added CFO Meschke, also becomes obvious in the continuing success in international sales markets. In financial year 2014, Porsche will increase its sales in its key single markets of the USA, China and Germany, and raise its overall sales figures worldwide.

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