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Porsche X-rays operations in first three months

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Porsche

Porsche has x-rayed it performance in the first three months of the year under COVID-19 pandemic.: The company’s operating result fell by 34 percent at €0.6 billion as compared to the previous year. The return on sales was 9.5 percent. Deliveries were down by 5 percent. The company handed over 53,125 vehicles to customers by the end of March. Since the beginning of the year, the workforce grew by one percent to 35,866 employees.

Lutz Meschke, Deputy Chairman of the Executive Board at Porsche AG and Member of the Executive Board responsible for Finance and IT, said: “At €6 billion, the company was able to achieve a slight increase in sales revenues compared to the previous year. This was due to a beneficial model mix and a positive development in business areas other than the car business.” A drop in volume as a result of COVID-19 and significant costs related to investments in electrification and digitalisation both worked against the positive developments. In addition, the company had to cover an increase in overheads from the introduction of new models, particularly the all-electric Taycan. Due to the current situation, these expenditures were not able to be offset by increased earnings in the first quarter.

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“The global pandemic is a major challenge for Porsche. It is important to maintain an optimistic approach and systematic management, so that when the crisis is over work can be resumed at full speed. We are committed to our investment plans in the electrification and the digitalisation of our cars,” says Oliver Blume, Chairman of the Executive Board of Porsche AG.

“In times like these, it is our intention to be true to our social responsibility. We are helping with donations and supporting the government with, for example, the procurement of medical protective equipment. Beyond that, many of our employees do voluntary work.”

 

“We are determined to make responsible decisions in response to COVID-19 and to see it as an opportunity,” says Meschke. “Now we are concentrating completely on managing costs, liquidity and cash flow, in order to protect our business and to be prepared to fully implement our strategy when business gets back to normal.”

 

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