Porsche Maintains Margin Target Despite Coronavirus
March 20 2020 - 8:21AM
Dow Jones News
By Jessica Sier
Porsche AG is maintaining its margin target even with the impact
of the coronavirus on the auto industry, the company said
Friday.
"We aim to continue to achieve our strategic goal of a return on
sales of 15%," Chief Financial Officer Lutz Meschke said, though
admitting the coming months would be challenging, "not least
because of the uncertainties surrounding coronavirus."
The sports car marker, a unit of Volkswagen AG, expects a
decline of around 10% in vehicle sales in the first quarter of 2020
compared with last year because of the coronavirus outbreak, but
Mr. Meschke said the carmarker is in a good position to earn a
double-digit return as it did during the global financial crisis a
decade ago.
During 2019, revenues at the sports car maker increased by 11%
to 28.5 billion euros ($30.8 billion) thanks to a boost in sales
figures. As reported in Volkswagen's results, Porsche's operating
profit before special items rose slightly by 3% to EUR4.4 billion.
The operating return on sales before special items fell to 15.4%
from 16.6%. After special items, the margin was 13.5%.
Write to Jessica Sier at jessica.sier@wsj.com
(END) Dow Jones Newswires
March 20, 2020 08:06 ET (12:06 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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