Investing
Porsche SE earnings down a third as German carmakers struggle
Global Banking & Finance Review®
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(Reuters) – Porsche SE’s earnings after tax fell a third, to 2.5 billion euros ($2.65 billion), in the first nine months of 2024, it said on Wednesday, weighed by the holding’s investments in carmakers Porsche AG and Volkswagen.
European carmakers are facing multiple hurdles, including high production costs, weak demand, the shift to electric vehicles and fierce Chinese competition.
Carmakers BMW, Mercedes-Benz and Stellantis have all issued profit warnings this year, and Volkswagen has proposed a 10% pay cut for employees and could close plants in Germany to save costs.
Porsche SE, which also holds shares in German bus service company Flix SE and Swiss car charger maker ABB E-mobility, said it supported planned cost-cutting at Volkswagen and expected the carmaker to meet its targets.
Porsche SE holds the majority of ordinary shares in Volkswagen and 25% plus one share of the ordinary shares in Porsche AG, the firm said.
All of its voting shares are held indirectly by members of the Porsche and Piech families.
($1 = 0.9427 euros)
(Reporting by Louis van Boxel-Woolf, Editing by Miranda Murray)
Corporate profit refers to the financial gain a company makes after all expenses, taxes, and costs have been deducted from total revenue.
An investment strategy is a plan designed to guide an investor's decisions on how to allocate assets in order to achieve specific financial goals.
Electric vehicles (EVs) are automobiles that are powered by electricity instead of traditional fuels like gasoline or diesel, contributing to reduced emissions.
Cost-cutting refers to the actions taken by a company to reduce its expenses in order to improve profitability and efficiency.
A holding company is a parent corporation that owns enough voting stock in another company to control its policies and oversee its management.
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