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March 15, 2019

Another good year for Porsche

Porsche said it set new records for operating profit, sales revenue, deliveries, and headcount in 2018.

By Olly Wehring

Porsche said it set new records for operating profit, sales revenue, deliveries, and headcount in 2018.

Operating profit grew by around 4% compared with the same period in the previous year, reaching EUR4.3bn, and sales revenue increased 10% to EUR25.8bn. Operating return on sales was 16.6%. In 2018, the company delivered 256,255 vehicles, a 4% increase . Workforce grew around 9%, to 32,325 employees.

"In the 2018 financial year, our attractive product range enabled us to once again significantly increase deliveries. Porsche is synonymous with emotional petrol engines and high-performance plug-in hybrids; in the future it will be just known as well for pure electric drive systems," said chairman Oliver Blume.

The automaker will be investing around EUR15bn in new products in the period up to 2023.

The Taycan, Porsche's first pure electric, will make its debut in September with its first derivative, the Cross Turismo, following at the start of the next decade, while the new generation Macan compact SUV will also feature electric drive.

The company projects that, by 2025, half of all its sales will be electrically driven models, or partially electrically driven plug-in hybrids.

"Our workforce has more than doubled in just seven years," Blume said, "and electromobility is another driver of jobs; we're creating 1,500 new roles for producing the Taycan alone. Our first purely electric sports car heralds the start of a new era – and we're very optimistic that the Taycan will be a success. Given that we already have more than 20,000 people seriously interested in buying one, we will be adjusting our production capacities upward."

"We achieved new records for sales revenue and operating profit in 2018. The increase in profit resulted in particular from a growth in volume, improved product mix, and positive development in our other business fields and divisions," said Lutz Meschke, deputy chairman and executive board member for finance and IT.

At 38%, Panamera sales grew the most to 38,443 vehicles. Despite the model change, the 911 recorded double-digit growth, with sales up 10% to 35,573. Cayenne deliveries rose 12% to 71,458 cars. The Macan remained top seller at 86,031.

China topped market growth at 12% to 80,108 units. US sales rose 3% to 57,202 units.

"The transformation of the automotive industry is in full swing. We are very much engaging with digitalisation, connectivity, and new mobility concepts," said Blume.

Further growth expected for 2019

"The switch to the new WLTP test cycle and gasoline particulate filters, combined with our elimination of new diesel-driven models, mean that the months ahead will also be challenging," added Meschke.

Despite this, Porsche expects increased deliveries in 2019, as well as a slight rise in sales revenue.

"Our products create the foundation for a successful financial year. In particular in 2019, we will have the new generation of the 911 being launched in all markets worldwide; further model derivatives of the 718 and Cayenne; and the launch of the Taycan," Meschke added.

Despite very high levels of investment in electrification, the digital transformation, and the expansion and renewal of some sites, the automaker wants to ensure that it continues to meet its ambitious earnings target.

"Through the use of efficiency enhancement measures and the opening up of new profitable areas of business, we want to continue achieving our strategic objective of an operating return on sales of 15%."

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