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Porsche posts 40% jump in nine-month operating profit
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BERLIN (Reuters) -Porsche reported a 40.6% leap in operating profit to more than 5 billion euros ($4.99 billion) on revenue up 15.7% in the luxury carmaker’s first results since its stock market listing in late September.
BERLIN (Reuters) -Porsche reported a 40.6% leap in operating profit to more than 5 billion euros ($4.99 billion) on revenue up 15.7% in the luxury carmaker’s first results since its stock market listing in late September.
The company reported an 18.9% return on sales and confirmed its full-year guidance for a 17-18% return, with a mid-term target of 17-19% and long-term target of 20%.
Deliveries were up only 2% to a little more than 221,500 vehicles, with exchange rate effects helping to boost profitability per car.
“The third quarter of 2022 was quite volatile and challenging from a political, economic and social perspective. Nevertheless, we were able to successfully list Porsche and get off to a flying start,” said finance chief Lutz Meschke.
Porsche, a huge money spinner for the Volkswagen group, overtook its former parent as Europe’s most valuable carmaker after the listing. Its shares stood at 99 euros by Thursday’s close, up from a listing price of 82.50 euros.
Oliver Blume, chief executive of both companies, said the listing would increase Porsche’s freedom as a business while providing Volkswagen with much-needed funds for its electrification drive.
In the short term the cost of the listing and the impact of suspending business in Russia has pushed down Volkswagen’s third-quarter earnings by 1.6 billion euros, results released on Friday showed.
($1 = 1.0030 euros)
(Reporting by Victoria WalderseeEditing by Rachel More and David Goodman)
Operating profit is the income generated from a company's core business operations, excluding deductions of interest and taxes. It reflects the efficiency of a company's operations.
Return on sales (ROS) is a financial metric that indicates how efficiently a company is generating profit from its sales. It is calculated by dividing operating profit by total sales.
A stock market listing occurs when a company offers its shares to the public through a stock exchange, allowing investors to buy and sell shares of the company.
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