Porsche moves up a gear with sevenfold surge in profit
Published 25/11/2010 | 05:00
Porsche SE, the maker of the 911 sports car, said operating profit surged more than sevenfold in the fiscal first quarter on demand for the Cayenne sport-utility vehicle and Panamera sedan.
Earnings before interest and tax advanced to €395m between August and October from €52m a year earlier, the Stuttgart, Germany, based manufacturer said. Sales climbed 80pc to €2.1bn.
Deliveries of the Cayenne, Porsche's best-selling model, more than doubled to 10,292 SUVs, while the Panamera, which went on sale about a year ago, also almost doubled to 5,778 cars.
Porsche, which will switch to calendar-year reporting in 2011, expects a return on sales that is "clearly" more than 10pc in the last five months of 2010, it said yesterday.
"It's a fairly good set of numbers and clearly highlights that Porsche's core business is doing well," said Alexis Albert, a Nomura Securities analyst in London with a 'reduce' rating on the shares.
Porsche gained as much as €2.83, or 5.3pc, to €55.90 in Frankfurt trading, valuing the company at €9.73bn.
Porsche is in the process of merging with Volkswagen AG, Europe's largest carmaker. VW acquired 49.9pc of Porsche's car-making unit after Porsche last year failed in a hostile takeover attempt for Wolfsburg, Germany, based VW.