Porsche AG declined after warning that the supply-chain challenges that have crimped output of its only fully electric vehicle will persist in the second half.
(Bloomberg) — Porsche AG declined after warning that the supply-chain challenges that have crimped output of its only fully electric vehicle will persist in the second half.
The German company also sees slowing growth in Europe as well as rising costs and limited availability of components, even as profit rose in the six months through June. The shares fell as much as 2.5% in Frankfurt.
“There’s no week where we have no supply-chain issue,” Chief Executive Officer Oliver Blume said Wednesday on a call with reporters. “We see still a lot of uncertainties also because of geopolitical uncertainties around the world.”
The strength of the key profit contributor to parent Volkswagen AG continues to be largely dependent on its legacy combustion-engine business. While unit sales rose 15% in the six months through June on robust demand for its 911 and Macan models, deliveries of its Taycan EV declined 5% due to parts shortages.
Porsche displayed encouraging quarterly earnings momentum despite remaining cautious about the 2H macroeconomic environment, with a strong order backlog across all models and luxury set to outperform volume peers. Pricing will be key, with Porsche set to push through further increases in 2H, helping to maintain Ebitda margin at the top of its 25-27% guidance range for 2023 vs. 26.7% in 2Q and 24.4% in 1Q.
Porsche Price, Mix Drives Ebitda Margin Momentum Into 2H: React
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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.
The carmaker is 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
Porsche’s operating profit climbed 11% to €3.85 billion ($4.3 billion) in the first half on stable pricing for its vehicles. Automotive net cash flow declined amid investments in new products and a temporarily higher inventory.
(Updates with CEO comment in third paragraph. A previous version of this story corrected the spelling of the Taycan model in the photo caption.)
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