Porsche boosts earnings thanks to China boom
GERMAN sports car maker Porsche said its quarterly profits have surged thanks to demand for luxury cars in China and North America.
First-half operating profit jumped 37 per cent to €1.07bn (£940m), the company jointly owned by Porsche SE and Volkswagen said yesterday.
Revenues were up almost 19 per cent at €5.22bn, implying a first-half operating margin of just over 20 per cent, well ahead of rivals BMW and Mercedes.
Porsche AG sold 47 per cent more cars in China in the six-month period than a year earlier, and the Asian country – the world’s biggest car market – accounted for about a fifth of its overall sales.
Premium and mass-market carmakers have looked to fast-growing markets such as China to make up for sluggish sales growth in Europe,.
First-half sales in North America were up 25 per cent, Porsche AG said as it repeated its target for record worldwide vehicle sales of more than 100,000 this year.
Volkswagen last week forecast a significant rise in operating profits this year, due to surging demand for its VW and upmarket Audi marques. Porsche SE is due to report first-half results today.