Porsche AG’s earnings rose in the first half thanks to robust demand for lucrative combustion-engine models like the Macan sport utility vehicle and the 911 sports car.
(Bloomberg) — Porsche AG’s earnings rose in the first half thanks to robust demand for lucrative combustion-engine models like the Macan sport utility vehicle and the 911 sports car.
Operating profit climbed 11% to €3.85 billion ($4.3 billion) on stable pricing for its vehicles, Porsche said Wednesday. The key profit contributor to parent Volkswagen AG confirmed its full-year outlook but cited challenges including rising costs, limited parts availability and geopolitical tensions.
Porsche’s strength continues to be largely dependent on its legacy combustion-engine business. Whereas unit sales rose 15% in the six months through June amid growth in all major regions, deliveries of its only fully electric model, the Taycan, declined 5% as it was more affected by parts shortages.
Porsche is implementing measures including forming partnerships on new technology to defend margins as it shifts to battery power. The luxury brand plans to launch an all-electric version of its Macan SUV next year, followed by battery versions of the 718 roadster and the Cayenne SUV.
It’s partnering with Mobileye Global Inc. on autonomous driving and took control of Cellforce, a venture that’s working on high-performance battery cells.
Read more: Porsche Flags €20 Billion Electric, Software Push at First AGM
The company’s automotive net cash flow declined in the period because of investments in new products and a temporarily higher inventory.
Porsche declined 0.9% as of 9:05 a.m. in Frankfurt. The shares are up around 16% this year.
(Updates with shares in seventh paragraph.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.