Porsche AG released operating results for the first half of 2017 today and they are quite good. In fact, across the board, Porsche increased operating results, revenue, deliveries and employee head count.
Chairman of the Executive Board of Porsche AG, Oliver Blume, says: “The priority of Porsche is to have thrilled customers and secure, sustainable jobs. Strong financial results create a solid foundation for the future. Porsche counts on puristic and passionate sports cars – this currently includes the new 911 GTS, the 911 GT3, the 911 Turbo S Exclusive and the 911 GT2 RS – as well as on future technologies such as plug-in hybrids and pure electric mobility.”
Porsche AG First Half of 2017 Operating Results
- Operating results increased 16% to 2.1 billion euro.
- Revenue increased by 8% to 11.8 billion euro.
- Profit Margin rose to 18.1% vs. 16.8% for the same period last year.
- Vehicle deliveries rose 7% to 126,497.
- Porsche's workforce increased to 29,280 employees for a 12% increase over last year.
Porsche's Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT atrributed Porsche's current success to a long-term currency hedging strategy and organizational efficiencies. However, he speculated that the extremely high result from the first half of the year may be difficult to sustain in the future.
Meschke: “We will only see a return on our sizeable investment for the development of Porsche's first purely electric sports car and the expansion of production at the Zuffenhausen site once the Mission E goes on sale at the end of the decade.”
Porsche is investing one billion euro in the Mission E and is creating more than 1,200 new jobs. In addition, the sports car manufacturer is spending a sum in the several hundreds of millions of euro on future technologies and plug-in hybrid drives.
“It’s massively challenging”, Meschke continues, “managing a significant sum of investment while sustaining our high level of return at the same time.”
Despite such outstanding results in the first half of the year, Blume and Meschke expect to see a year-end operating result that is only slightly above last year’s high level.