Porsche moves up a gear with sevenfold surge in profit
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.