(RTTNews) - German sports car manufacturer Porsche AG, part of Porsche Automobil Holding SE (POAHY.PK), reported Wednesday weak operating profit in fiscal 2024 amid lower sales and deliveries. The lower results were mainly due to the continuing market challenges in China. The company also issued cautious outlook for fiscal 2025.
Further, CFO Dr Jochen Breckner said, "Porsche has proven in 2024 that we operate highly profitably even in challenging times. In the long term, we remain committed to our fundamental goal of a Group operating return on sales of more than 20 per cent. In the medium term, we are aiming for 15 to 17 per cent due to the persistently challenging environment. We are consciously setting out on a comprehensive recalibration and sustainably strengthening Porsche for the future."
In fiscal 2024, operating profit was 5.64 billion euros, down 22.6 percent from last year's 7.28 billion euros. Operating return on sales was 14.1%, lower than prior year's 18.0%.
Earnings in the 2024 financial year were mainly impacted by the challenging economic environment and the comprehensive renewal of the product portfolio.
Turnover of 40.08 billion euros edged down 1.1 percent from prior year's 40.53 billion euros.
Total deliveries were 310,718 vehicles in the year, down 3 percent from last year's 320,221 vehicles, mainly due to weak China.
In a challenging environment, Porsche recorded sales records in four out of five regions of the world - in Europe, Germany, North America and the Overseas and Emerging markets.
Further, the Executive Board and Supervisory Board will propose to the Annual General Meeting of Porsche AG a dividend payment of 2.1 billion euros. This corresponds to 2.30 euros per ordinary share and 2.31 euros per preference share, same as last year.
Looking ahead, for fiscal 2025, Porsche AG expects a Group operating return on sales in a range of 10 to 12 percent. Sales revenues are projected in the region of around 39 to 40 billion euros.
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