Porsche AG Books Lower Revenue, Profitability on Higher Costs

By David Sachs and Christian Moess Laursen

Porsche AG's revenue and profitability fell in the first quarter on higher costs from the ramp-up of new models.

The German luxury sports-car maker's quarterly revenue fell to 9.01 billion euros ($9.67 billion) from EUR10.10 billion a year prior. The figure missed analyst expectations of EUR9.33 billion, according to Visible Alpha.

Operating return on sales, a profitability measure, was 14.2%, down from 18.2% a year ago and below the company's reiterated full-year guidance of 15% to 17%.

Operating profit slipped to EUR1.28 billion, from EUR1.84 billion in the first quarter of last year.

The planned renewal of its model range caused increased research-and-development costs and marketing activities during the quarter, the company said.

"In the first quarter, we gained a lot of momentum to lay the groundwork for future success," Deputy Chairman Lutz Meschke said.

Besides backing its profitability target, Porsche kept its full-year guidance of revenue between EUR40 billion and EUR42 billion.

It delivered 3.9% fewer vehicles during the quarter, at 77,640.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

April 26, 2024 11:44 ET (15:44 GMT)

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