Porsche generated an operating result of EUR2 billion in the first three quarters of 2020 despite the coronavirus pandemic. With a revenue of EUR19.4 billion, the sports car manufacturer recorded a 10.4 per cent return on sales in the last nine months.
Although the operating result was down by 28 per cent on last year’s figure, Deputy Chairman and member of the Executive Board at Porsche AG Lutz Meschke is satisfied with the result.
“We are now profiting from the fact that continuous optimisation of our processes is part of our DNA,” he said. The resultant increase in efficiency enabled Porsche to achieve a double-digit return on sales despite the uncertain situation in the automotive industry.
Chairman of the Executive Board at Porsche AG Oliver Blume believes that the impressive product range is another success factor. “Our young, attractive product portfolio appeals to customers. I’m optimistic about the coming months,” Blume said. “The new 911 and our electric sports car the Taycan impressively demonstrate our innovative strength, and their sales figures exceeded our expectations.”
Some 25,400 units of the classic 911 sports car were delivered in the first nine months of the year, corresponding to an increase of one per cent year-on-year. The all-electric Porsche Taycan was launched in September 2019 and was handed over to almost 11,000 customers between January and September.
Since the start of the year, Porsche delivered 191,547 cars to customers worldwide. Although this is five per cent less than in 2019, Porsche managed to keep the drop at a moderate level compared to the market as a whole.
The sports car manufacturer profitted primarily from the Chinese market which recovered quickly after the lockdown. Between January and September, Porsche handed over 62,823 vehicles to customers in China. This corresponds to almost a third of its global deliveries. Demand is also recovering strongly in other markets.
Despite the difficult conditions on the overall market, Porsche is pursuing its investments in digitalisation and electrification. EUR15 billion will be invested into new technologies over the next five years.
“Although this investment reduces our current result, in the long term it will help to secure the future of the company and jobs,” Meschke emphasised. Besides the challenging market environment, currency effects have also had a negative impact on the result.
However, Meschke emphasised that a return on sales of 15 per cent still remains the strategic goal of Porsche AG. “Due to the effects of the coronavirus pandemic, this is unrealistic for 2020 but, thanks to our long-term strategy, we are confident that we will achieve a double-digit return on sales at the end of this year.”