Well, guess what? High-class car giant, Porsche AG, had a rather pleasing Wednesday. They announced a sweet uptick in their operating profit for the first half of the year, seeing it soar by a nifty 10.7%, bringing home a whopping 3.85 billion euros ($4.25 billion). And that’s not all folks! Despite the world’s economy walking on eggshells, they’re standing their ground, sticking to their predictions for the second half of the year.
Porsche’s revenue took a leap too, skyrocketing 14% to an astronomical 20.43 billion euros. Deliveries? Oh, they took a joyride, too, heading 14.7% higher. This strong bounce-back was a real breath of fresh air after last year’s stumble, partly brought on by China’s lockdown blues.
Sure, the luxury car brand is feeling the pinch with expenses being a touch heavier than last year. A chunk of this stems from promoting their coveted Porsche Cayenne and bringing their operations into the digital age. But, hold your horses, they’ve played their cards right, keeping the dough rolling in by maintaining steady pricing on their increasingly popular wheels.
Rewind to May, and the company dropped a hint they’d be nudging prices up by 4-8% in Europe and the U.S. to help balance the books against these pesky higher costs. A move that put a bit of a damper on their first-quarter returns.
In terms of operating returns on sales, they sat pretty at 19.5% in the second quarter. However, the first half, on the whole, saw them dip to 18.9%, which was a smidge lower than last year’s impressive 19.4%.
Porsche didn’t sugarcoat the truth, admitting, “The global economic situation remains tense.” From the ongoing scramble for parts to the steady climb of costs, not to mention the political tightropes being walked worldwide, they’ve got their work cut out for them.
($1 = 0.9050 euros)
