Porsche restructuring starting to pay off, says CEO
Porsche's Financial Performance and Strategic Overhaul
By Rachel More
Restructuring Measures and 2026 Guidance
BERLIN, July 29 (Reuters) - Porsche's restructuring measures have enabled the luxury carmaker to confirm 2026 guidance despite multiple challenges, it said after reporting half-year results on Wednesday.
CEO's Perspective on Strategy and Challenges
CEO Michael Leiters said the company, majority owned by Volkswagen, had worked intensively on strategy since he took the job at the start of the year but warned that a lot of work remains to be done.
Impact of Job Cuts and Financial Outlook
A new package of job cuts, bringing the total to about 9,000, or 20% of the workforce, is expected to hit second-half results by between €300 million ($342 million) and €400 million, with an impact in a similar range next year, said finance chief Jochen Breckner.
"But we are convinced that this expenditure will soon pay off," Breckner added.
Challenges Facing Porsche and Volkswagen
Both Porsche and parent Volkswagen are targeting comprehensive overhauls, hit by billions in U.S. tariff charges, weak sales in China and cost pressures in Germany.
Financial Results and Turnaround Strategy
"The financial figures for the first half of the year are in line with our expectations," Breckner added, citing rigorous cost management and positive effects from a shift towards high-end, margin-boosting cars — a key pillar of Leiters' turnaround strategy.
Group operating profit grew by 34% to €1.35 billion in the first half of the year, Porsche said.
Revenue and Operating Return on Sales
While revenue slumped 5%, the company posted an operating return on sales in the six-month period of 7.8%, above its targeted range of 5.5% to 7.5% for the full year.
($1 = 0.8772 euros)
(Reporting by Rachel MoreEditing by Linda Pasquini and David Goodman)