Porsche Profit Holds Firm as 911 Cushions Sales Slump
(Bloomberg) -- Porsche AG’s profitability held up despite another sharp decline in vehicle sales, as demand for 911 sports cars and high-priced derivatives helped cushion the slump in China and weaker factory utilization. The automotive division posted a 6.9% operating margin for the first nine months, compared with 0.2% a year ago, while group operating profit recovered to €1.74 billion ($1.94 billion) from €0.04 billion a year earlier. Revenue was €25.3 billion, versus a €26.9 billion a year earlier. Porsche retained its full-year forecasts for revenue of €35 billion to €36 billion and a group operating margin of 5.5% to 7.5%. Maintaining the outlook signals confidence in the fourth quarter, with analysts’ revenue estimates currently sitting just above the bottom of the range. Chief Executive Officer Michael Leiters is working to repair a profit formula built on strong Chinese demand…
