Porsche sales likely to drop during current financial year
The Porsche Automobile Holding SE Stuttgart had remained unaffected from global downturn during business year ending July 31. It set new records in profits, production, sales and turnover. The company’s success created more jobs within the group. But Porsche could not escape from sharp fall in demand which has engulfed entire auto industry and is predicting drop in sales in the current financial year.
Year 2007- 08 was the best performance year in Porsche’s 60-year history. Group profits before taxes, jumped by 46% to 8.569bn Euro mainly due to holdings in Volkswagen AG. Porsche’s operative profits were corrected for effects from hedging operations and interest result of Porsche SE which amounted to 1bn euros. Increased development cots for Cayenne hybrid drive and Panamera series affected the results.
However these effects were offset by cash settled share transactions through which Porsche is entitled to stock exchange price of Volkswagen shares.
These transactions contributed 6.834bn Euro as against 3.593 Euro last year. The profit attributable to Porsche is 1.007bn Euro, which includes 160.4m Euro in the form of dividend.
Porsche’s turnover grew by 1.3% to 7.466bn Euro, fuelled mostly by Cayenne series. Its sales increased by 34% to 45,478 units.
Total production of the group, with 12,200 employees at work, increased by 3.3% to 105,162 units.
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