Porsche confronted the effects of the corona crisis in the first three months of 2020 with the company’s operating result down by 34 per cent at EUR0.6 billion as compared to the previous year while the return on sales was 9.5 per cent.
Deliveries were down by five per cent with the company handing over 53,125 vehicles to customers by the end of March. Since the beginning of the year, the workforce grew by one per cent to 35,866 employees.
Deputy Chairman of the Executive Board at Porsche AG and Member of the Executive Board responsible for Finance and IT Lutz Meschke said, “At EUR6 billion, the company was even able to achieve a slight increase in sales revenues as compared to the previous year. This was due to a positive model mix, and the business units besides the car business also developed positively.”
As a result of the corona crisis, a drop in volume and costs related to continued high investments in electrification and digitalisation both worked against the positive developments.
In addition to these costs was an increase in overheads from the introduction of new models – particularly the all-electric Taycan. Due to the corona crisis, these expenditures were not able to be offset by increased earnings in the first quarter.
“The global corona crisis is a major challenge for Porsche. It is important to maintain an essentially optimistic overall approach and systematic management so that when the crisis is over, work can be resumed at full speed. We are committed to our investments in the future in terms of electrification and the digitalisation of our cars,” said Chairman of the Executive Board of Porsche AG Oliver Blume. “In times like these, it is also our intention to be true to our social responsibility. We are helping with donations and supporting the government with, for example, the procurement of medical protective equipment. Beyond that, many of our employees are volunteering their services.”
“We are determined to make responsible decisions in response to the crisis, and to see it as an opportunity,” said Meschke. “Now we are concentrating completely on managing costs, liquidity and cash flow, in order to protect our business and to be prepared to return to fully implementing our strategy when the crisis is behind us.”