The Stuttgart car manufacturer was able to increase its business significantly in the first nine months of the year. Compared to the same period last year, sales rose by almost 16 percent to 26.7 billion euros, as Porsche announced on Friday. The company has “financially developed excellently despite significant global challenges,” said CFO Lutz Meschke according to the announcement.
The operating result increased from almost 3.6 billion euros in the previous year to 5.05 billion euros. The financial services provided by Stuttgart are also included in the figures. The company confirmed its outlook for 2022. Accordingly, Porsche continues to expect a return on sales of 17 to 18 percent. “Despite the challenging times, we are confident and trust in our high profitability and our financial and operational resilience,” said Meschke. In a volatile and difficult market environment, the car manufacturer is showing that it is operating profitably. “Thanks to cost discipline and an attractive product mix.”
The Volkswagen Group had taken Porsche public in September and had grossed 9.1 billion euros by listing a quarter of the Porsche AG shares. In addition, 25 percent plus one share of the voting stock of Porsche AG will go to the VW parent company Porsche SE, which is controlled by the owner families Porsche and Piëch. Thanks to the sale of the shares, VW shareholders are to receive a special dividend of EUR 19.06 per share.
Porsche stock weak by numbers
Light and shadow were seen in the Porsche numbers. Here analyst Tom Narayan from RBC spoke of strong key data. The company exceeded its estimates for operating profit and cash flow. According to him, the fact that the outlook was not raised, as some investors had expected, is probably only due to management’s caution.
UBS expert Patrick Hummel, on the other hand, wrote: “In terms of sales and profitability, Porsche was well below the first half in the third quarter.” Lower deliveries due to bottlenecks would have weighed on the margin in a quarterly comparison. However, the number of orders has increased. However, this and the continued rock-solid demand should provide a certain confidence, he summed up. He had already expected price losses in the share before the start of trading.
Hearing on a lawsuit against the Porsche works council election on Thursday
The labor court in Stuttgart will hear a lawsuit challenging the works council election at the car manufacturer Porsche next Thursday. Several employees want the March election to be declared invalid because they believe electoral regulations have been violated, the court announced on Friday. The car manufacturer and the works council, on the other hand, did not see any errors in the election. At the end of April there was already a first hearing in court.
The plaintiffs complain, among other things, that in the absence of a joint operation, no joint election should have been carried out, the court further announced. Significant violations also existed in the case of notifications regarding the casting of votes and the casting of votes themselves. The information on the place, day and time of the possible voting was only announced on March 10, 2022, at a time when numerous employees were on short-time work. In any case, they were not sufficiently informed, according to the argument of the plaintiffs.
According to the works council and the company, no election regulations were violated. The joint works council election was already required under the Works Constitution Act, but was also secured by collective agreements, the court said. The works council also pointed out that the announcement of the vote had been made properly and in good time.
The Porsche sports car share ultimately gained 0.66 percent to 99.92 euros in XETRA trading before the weekend.
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