Porsche Q1 2014 sales, revenue and operating profit growth
Porsche AG reports increase in deliveries, revenue and operating profit in Q1 2014. 38,663 vehicles were sold to register 4.5% sales growth. Revenue rose by one-fifth to 3.93 billion euro in Q1. Operating profit grew by 22% to 698 million euro. As of February 2014, Porsche employs 20,416 personnel as compared to about 13,000 employees 3 years earlier, and 15% more employees working than a year ago. Employee numbers have risen by 960 in Q1 2014 alone. Increasing number of employees reflects Porsche growth strategy. Leipzig plant where new Macan is being produced, showed greatest growth. New jobs have been created at the other Porsche locations too.
Lutz Meschke, Member of the Executive Board Finance and IT of Porsche AG underscored Porsche earning power reflected in high return on sales of almost 18% and rising labor costs and write-offs due to the launch of Macan SUV range. “In addition to that, there are high expenditures for meeting the CO2 requirements and substantial investments in the build-out and modernization of the Zuffenhausen, Leipzig and Weissach locations,” Meschke continued. Nevertheless, the CFO is optimistic about the course of the 2014 fiscal year: “Assuming that sales in Europe will continue to stabilize despite the unresolved structural problems, our aim is to achieve at a minimum a profit comparable to the previous year.”
Matthias Müller, Chairman of the Executive Board of Porsche AG explains the need for substantial investments and development expenditures, amounting in each case to significantly more than 1 billion euro in the ongoing fiscal. “We are focusing on fulfilling the promise of our brand – to offer the sportiest and technologically cutting-edge vehicles in our segments – on a long-term basis. The improvement of fuel efficiency as well as a responsible use of resources constitute integral parts of the strategy of Porsche.”
He is certain Porsche will continue to grow especially in its largest sales markets United States and China. Müller added, “Overall, the sales of Porsche will rise once more in the 2014 fiscal year. The market launch of the Macan will give us an additional boost.”