Sun | Jan 17, 2021

Success in uncertain times: 10.4% return on sales

Published:Sunday | November 1, 2020 | 12:08 AM

This undated photo provided by Porsche shows the 2020 Porsche Taycan, Porsche’s first all-electric car.
This undated photo provided by Porsche shows the 2020 Porsche Taycan, Porsche’s first all-electric car.

In the first three quarters of 2020, Porsche generated an operating result of 2.3 billion dollars despite the worldwide coronavirus pandemic. With revenue of 22.7 billion dollar, the sports car manufacturer recorded a 10.4 per cent return on sales in the last nine months. Although the operating result was down by 28 per cent on last year’s figure, Lutz Meschke, Deputy Chairman and Member of the Executive Board responsible for Finance and IT at Porsche AG, is very satisfied with the result: “We are now profiting from the fact that continuous optimisation of our processes is part of our DNA.” The resultant increase in efficiency has enabled Porsche to achieve a double-digit return on sales despite the uncertain situation in the automotive industry.

Oliver Blume, Chairman of the Executive Board at Porsche AG, believes that the impressive product range is another success factor: “Our young, attractive product portfolio appeals to customers. I’m optimistic about the coming months,” says Blume. “The new 911 and our electric sports car, the Taycan, impressively demonstrate our innovative strength, and their sales figures have exceeded our expectations.” 25,400 units of the classic 911 sports car were delivered in the first nine months of the year, corresponding to an increase of one percent year-on-year. The all-electric Porsche Taycan was launched in September 2019 and was handed over to almost 11,000 customers between January and September.

Since the start of the year, Porsche has delivered 191,547 cars to its customers worldwide. Although this is five percent less than in 2019, Porsche has managed to keep the drop at a moderate level when compared to the market as a whole. The sports car manufacturer has profited primarily from the Chinese market, which has recovered quickly after the lockdown. Between January and September, Porsche handed over 62,823 vehicles to customers in China. This corresponds to almost a third of all its global deliveries. Demand is also recovering strongly in other markets.