Porsche begins 2014 on strong note after record sales in 2013

At an annual press conference held in Stuttgart on Friday, Porsche AG announced its achievements for the year 2013. The past year saw a record number of deliveries, besides increased revenue and profits and a 11% increase in employees to a total of 19,456.

Porsche AG stated that in the past year deliveries increased 15% higher as against the previous year with 162,145 units delivered. Revenue increased 3% to 14.3 billion Euros while operating profits increased to 2.58 billion Euros, an increase of 6% as compared to that of the previous year. The company also added to its employees during the year, taking final total to 19,456 employees.

PORSCHE CARS NORTH AMERICA, INC. LOGOPorsche’s achievements during 2013 also included the fact that it became the first company to introduce Panamera S E Hybrid, the first plug-in hybrid in the luxury segment, while Porsche 918 Spyder was first super sports car with high performance plug-in hybrid technology. It was these introductions that marked the year 2013 as the most successful year of the company to date.

While ending the past year on a positive note, the company has also entered 2014 on a promising note with worldwide deliveries increasing 3% in the first two months itself. During January-February 2014, Porsche AG has delivered 23,286 units setting trend for more intense sales in months ahead. The company will be launching Macan, a midsized SUV in April this year which will further augment sales while Porsche will have to concentrate on developments to meet stringent future emission standards.

CEO Matthias Muller emphasized that the sports car manufacturer “had not only continued to grow profitably, but had also done full justice to its role as technological leader by developing new technologies and launching fascinating products.” In the fiscal year 2013, Porsche became the first company to present a plug-in-hybrid vehicle in the luxury class, the Panamera S E-Hybrid, as well as the first super sports car with high-performance plug-in hybrid drive, the 918 Spyder. In addition, Porsche unveiled the first sports car in the compact SUV segment, the Macan. Muller stressed that “with these vehicles, we have laid the foundation for continued future success” and added that “they were also a factor in making 2013 the most successful year in the company’s history to date.”

At the conference in Stuttgart, Lutz Meschke, member of Porsche AG’s executive board in charge of finance and IT, emphasized that the sports car manufacturer’s “healthy cost structure and the long-term high earnings power were reflected in an operating return on sales of 18 percent.” Furthermore, the CFO highlighted that the net liquidity of the automotive division ‚Äď i.e., its gross liquidity less financial liabilities and excluding the financial services business ‚Äď improved significantly from minus 1.87 billion euro as of 31 December 2012 to minus 899 million euro as of 31 December 2013. Meschke continued: “This brings us another big step closer to achieving our medium-term goal of repaying our debt in full while financing growth from our cash flows from operating activities.”

According to CEO Muller, “this positive trend will intensify in the course of 2014 and the market launch of the Macan in April will further increase the company’s sales.” CFO Meschke added that the launch of the Macan entailed higher personnel costs and depreciation charges and that Porsche would also have to make considerable advance outlays on modern drive concepts in order to meet more stringent future emission standards worldwide. Meschke said that, despite this, “we are ideally equipped for the current fiscal year. Assuming that, despite unresolved structural issues, sales in Europe continue to stabilize, our goal in 2014 is to again achieve operating profit at least on a par with that of the prior year.”

The positive sentiment has continued through Feb ’14 with 11,061 cars sold worldwide. For sports car manufacturer Porsche AG thsi equated to about 6% sales growth as compared to Feb’13 sales. For January and February 2014, Porsche has sold 23,286 new cars.

“We’re as at February over last year’s figures all around the world,” said Bernhard Maier, Member of the Executive Board Sales and Marketing of Dr. Ing. h.c. F. Porsche AG. “That says a lot about our fascinating products and a high level of achievement along the entire added value chain. At the moment, we’re introducing the new Macan to our dealers in Barcelona before its worldwide launch starting in April,” he said.

In February 2014, deliveries in Europe accounted for over 3,300 vehicles sold at an increase of 14% over February 2013. In Germany, Porsche reported around 1,500 new cars delivered, an increase of 13% over February 2013. In US, around 3,200 deliveries were reported at 14% increase in its biggest market compared to February 2013. Globally about 2,000 Panamera units were delivered, an increase of 8%. 1,700 customers globally bought from the Boxster model range including new Cayman with sales at about 60% increase compared to February 2013.

ORSCHE AG

Deliveries

February January – February
2014 2013 Variance (%) 2014 2013 Variance (%)
World 11,061 10,454 5.8 23,286 22,515 3.4
Europe 3,332 2,920 14.1 6,236 6,070 2.7
Germany 1,456 1,290 12.9 2,937 2,636 11.4
America 3,680 3,225 14.1 7,204 7,059 2.1
USA 3,232 2,805 15.2 6,328 6,163 2.7
Asia Pacific,
Africa and
Mideast
4,049 4,309 -6.0 9,846 9,386 4.9
China 2,387 2,689 -11.2 6,422 5,812 10.5