Porsche boosts revenue by 32.4 percent in first quarter – strong 911 sales
Porsche has got the new financial year off to a flying start. The company managed to increase sales, revenue and operating profit significantly in the first quarter of 2012. Porsche increased its worldwide sales by 29 per cent to 30,231 vehicles. Compared with the same quarter the year before, revenue was up 32.4 per cent to 3.025 billion euro. Operating profit reached 528 million euro, 18.4 per cent more than in the first quarter of 2011. That put Porsche’s operating return on sales at 17.5 per cent. Moreover, already in the first quarter the sports car manufacturer took on 725 new employees (+4.7 %), giving Porsche AG a total worldwide labour force as at 31 March of 16,032 employees.
“Behind these extremely gratifying figures is a clearly defined line: we focus systematically on solid, sustainable and high-quality growth,” said Matthias Müller, President and Chief Executive Officer of Porsche AG. “The youngest and most efficient model range of all time gives us an outstanding platform on which to sustain this course throughout 2012,” Müller said.
Sales of the new 911 alone, launched in December 2012, increased by 37.6 per cent in its first full quarter, compared with sales of the predecessor model one year earlier. Porsche is also registering a strong inflow of new orders for the new Boxster only recently unveiled at the Geneva Motor Show – just as it has for the new attractive Cayenne and Panamera GTS models. This year, Porsche will be bringing a further nine models to market – from new derivatives of the new 911 to the especially sporty Cayenne GTS.
In the first quarter of 2012, Porsche benefited first and foremost from increased demand in China, in the German domestic market and in the USA. The biggest increase was posted by the Panamera sports saloon with a jump of 58.4 per cent, with disproportionately strong growth of the six-cylinder engine version. In the opening quarter, 29.4 per cent more units of the Cayenne SUV were delivered to customers worldwide than in the same period of 2011.
“We are extremely satisfied with the first quarter 2012 results. We will keep this momentum going – exactly in line with our growth strategy,” said Lutz Meschke, Chief Financial Officer of Porsche AG. “We can fund both the significant increase in investment and the development expenditure for expanding our model range out of our strong cash flow. And both of those things with a return on sales of 17.5 per cent, which is significantly in excess of our strategic target value of a minimum of 15 per cent.”
Between January and March 2012, Porsche produced a total of 36,067 vehicles. That represents a 15 per cent increase compared with the same period last year. In the Leipzig plant, where the Cayenne and Panamera are produced, Porsche has expanded production to 450 units per day since the third shift was introduced in January 2012.
Porsche has set itself ambitious business targets with “Strategy 2018”: with an operating return on sales of at least 15 per cent and a return on capital of at least 21 per cent the aim is for the company to remain one of the world’s most profitable car manufacturers. Porsche thrills its customers with unique products and an outstanding purchase and ownership experience. Moreover, the sports car manufacturer is a much sought-after international employer and a fair and reliable partner for all stakeholders. The intention is to boost sales to approximately 200,000 vehicles by 2018. To that end, Porsche is investing in rejuvenating and expanding the entire model range. In 2011, the new edition of the Porsche 911 got the process underway. This will be followed in 2012 with the all-new Boxster and by the new Cayman. The introduction of the Macan urban SUV, to be built in the Leipzig plant, is to provide additional impetus from 2014 onwards.