By Christoph Rauwald
German sportscar maker Porsche Automobil Holding SE (PAH3.XE)
Friday reported rising sales and profits for the first half of the
year as demand for such cars as the 911 and the Cayenne
sports-utility-vehicle remained unaffected by swirling economic
concerns.
"We expect to outperform the result of the prior year and
achieve our profit targets [in 2012] despite the high development
and structural costs for new models," Porsche chief financial
officer Lutz Meschke said in a statement.
Porsche's results mirror robust sales volumes and earnings at
rivals including BMW AG (BMW.XE) and Daimler AG's (DAI.XE)
Mercedes-Benz brand, which are on track to set new annual sales
records this year.
Demand for luxury cars has been largely unaffected from the woes
embroiling the more price-sensitive mass-market segment, where
demand in western Europe has been shrinking for months.
Porsche's operating profit rose by 21% on the year in the first
six months to 1.26 billion euros ($1.54 billion), while revenue was
up 29% at EUR6.76 billion. Vehicle sales rose 23% to 68,940 cars,
keeping the Stuttgart-based company on track for a new annual sales
record in 2012.
This month, Volkswagen AG (VOW.XE) hammered out a deal to take
over the remaining 50.1% stake in Porsche's sportscar unit it
doesn't already own as of Aug. 1 for EUR4.46 billion in cash plus
one common share.
Porsche will be fully integrated into Volkswagen's stable of
seven car brands, three commercial vehicle brands and the newly
acquired motorbike unit Ducati.
The company retained its position as one of the world's most
profitable car makers in the first six months with an operating
profit margin of 18.7%. This compares with profit margins of about
10% for other premium car makers. Many mass-market rivals have
operating profit margins of 5% or less.
Write to Christoph Rauwald at christoph.rauwald@dowjones.com
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