95.9 percent drop in profit for Porsche

Porsche posts nearly one billion euro quarterly los magazin de piese auto online.

95.9 percent drop in profit for Porsche

Porsche, once a leading company, is in a deeper crisis than experts had expected: the sports car manufacturer reported an operating loss of almost one billion euros in the third quarter of this year – the highest in its history.

Dramatic: The billions of euros spent on extending the use of internal combustion engines almost completely wiped out the sports car and SUV manufacturer's profits in the first three quarters. After taxes, profits collapsed by 95.9%.

As the company announced on Friday, the group's operating profit fell to just 40 million euros from January to September - compared to more than 4 billion euros in the previous year. In the third quarter alone, the loss amounted to 967 million euros, significantly more than the 600 million euros expected by analysts. The reason: high restructuring costs of around 1.8 billion euros.

Problems with sales in China and US tariffs

Porsche is particularly suffering from a sales slump in China, where the luxury car market has collapsed due to a weaker economy. In addition, high US import tariffs are weighing on profits by an average of three-digit million euros.

The strategic change also generates costs: Porsche is postponing the planned electric platform, halting its own battery production and focusing more on models with internal combustion engines. Together with the planned personnel measures, the costs for 2025 will total 3.1 billion euros.

Hundreds of jobs are at risk

Porsche has already announced 1,900 job cuts at the beginning of the year. Negotiations are currently underway between management and the works council on a further cost-cutting program. “We have to assume that the general conditions will not improve in the foreseeable future,” said the brand’s finance chief Jochen Breckner. “Serious approaches” are therefore needed to secure employees.

Despite the drop in profits, revenue and sales fell by only around six percent. With 212,069 vehicles delivered, Porsche generated revenue of 27 billion euros by the end of September.

For the full year, the company continues to expect revenue of 37 to 38 billion euros and profitability of two percent – a fraction of what it was in the past, when Porsche was considered the most profitable German automaker with a 15 percent margin.

Car parts AutoPower
Car parts AutoPower

Porsche, once a leading company, is in a deeper crisis than experts had expected: the sports car manufacturer reported an operating loss of almost one billion euros in the third quarter of this year – the highest in its history

Dramatic: The billions of euros spent on extending the use of internal combustion engines almost completely wiped out the sports car and SUV manufacturer's profits in the first three quarters