FRANKFURT (Reuters) -Porsche on Friday reported a 30% drop in first-quarter operating profit, citing higher investments in what the German luxury carmaker has called its biggest year of product launches in history.
Operating profit in the first three months of 2024 came in at 1.28 billion euros ($1.37 billion), in line with an LSEG estimate, while sales for the period stood at 9.01 billion, beating the 8.77 billion forecast.
“In a challenging environment, we are staying on course and resolutely pursuing our strategy,” Porsche AG CEO Oliver Blume, who also heads Porsche’s parent Volkswagen, said in a statement.
German carmakers are struggling to revive Chinese demand, with deliveries to their largest market falling at competitors BMW and Mercedes, and Porsche recording a 24% slump in quarterly deliveries.
Porsche finance chief Lutz Meschke said that while demand in China remained challenged the company would not compromise on margins by steering clear of a price war that has gripped the local market.
The group, which was listed in 2022 to command higher valuation multiples, kept its 2024 outlook for a 2024 profit margin of 15%-17%.
($1 = 0.9348 euros)
(Reporting by Christoph Steitz and Andrey Sychev, Editing by Friederike Heine and Sarah Marsh)
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