Porsche AG, the sports-car maker merging with Volkswagen AG, said first-half operating profit surged 59 percent on increased demand for the Cayenne sport-utility vehicle. Earnings before interest and taxes advanced to 1.07 billion euros ($1.54 billion) from 675 million euros a year earlier, the Stuttgart, Germany-based company said today in a statement. Six-month revenue rose 19 percent to 5.22 billion euros. Backed by VW, Porsche aims to double sales to at least 200,000 cars and SUVs by 2018 by introducing new models and expanding in emerging markets. The maker of the 911 sports car expects to boost deliveries to more than 100,000 this year from 97,000 in 2010, the carmaker reiterated today. Cayenne first-half sales more than doubled to 28,405 vehicles. “These are excellent results, profit and margin are both above expectations,” said Juergen Pieper, a Frankfurt-based analyst at Bankhaus Metzler who recommends buying the stock.
“Porsche has excellent products with the Cayenne and Panamera and the overall environment for premium cars is very solid.” Porsche rose as much as 1.98 euros, or 3.7 percent, to 55.66 euros and was up 1.6 percent to 54.56 euros as of 10:17 a.m. in Frankfurt trading. The shares have gained 7 percent this year, valuing the carmaker at 16.7 billion euros.
To sustain growth, Porsche aims to adjust rollouts to have at least one new product each year, sales chief Bernhard Maier said last month. The key model in 2011 will be the seventh generation of the 911, which debuts at the Frankfurt motor show next month. The revamped car will be more agile than the current version while selling for about the same 86,000 euros for the basic model.
The German manufacturer, which relies on the Cayenne for half its deliveries, plans to increase production of its best-selling model by 10 percent to 20 percent starting next year. Demand for the SUV, which includes a Turbo version costing 121,000 euros, caused the waiting list to extend to as much as 12 months in markets including China. Porsche’s model lineup with the 911, Boxster/Cayman, Panamera and Cayenne will be expanded by 2013 to include a compact SUV. In the same year, the company will add a limited series of the 918 Spyder hybrid, a 500-horsepower vehicle with a V8 engine and electric motors that has a top speed of 320 kilometers per hour.
Porsche may also develop a supercar positioned higher than the 237,600-euro 911 GT2 RS, which currently marks the top end of the 911 lineup, Maier said last month. Additional variants of the Cayman and Boxster, plus extended-wheelbase and convertible versions of the four-door Panamera, are also conceivable, according to the executive.
By: Andreas Cremer