Profit margin revised downward from 171 TP1T to 151 TP1T
Porsche is forecasting a reduction in its profit margin from 171% to 151% this year. In addition, the company, which is suffering from sluggish demand in China, is also lowering its forecasts for both sales and the proportion of electric vehicle sales.
The main reason for the downward revision of the earnings forecast is that the company may be forced to halt production of some models due to a shortage of aluminum parts.
The shortage of aluminum parts, announced by Porsche on July 23, 2024, was due to flooding at a production facility of a major European supplier, but the company did not disclose which supplier that was.
Porsche production may be halted for several weeks
The shortage of aluminum parts caused by the flooding will affect aluminum parts used in all Porsche vehicles, and production may be affected for several weeks.
Now, people are worried about whether the car will be produced or not...Am I eligible too?(Lol).
Following the announcement of the downward revision, Porsche shares fell as much as 7.71 TPP1T in Frankfurt, the biggest intraday drop since trading began in September 2022.
Porsche says the problem will prevent production of at least 10,000 vehicles in the second half of the year.
Porsche's suppliers have also reportedly declared "force majeure" (exemption from contractual liability due to force majeure) over this incident.
The cause of the flooding in the first place is thought to be the large-scale flooding (natural disasters) that has hit several European countries in recent weeks.
Porsche plans to announce its 2024 half-year financial results on July 24, 2024 (German time).
Source:Porsche Warns on Profit as Supply Chain Hit Slows Production
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I'm Rika, the author of this article. Ever since Porsche 911 became my favorite car, I've become totally addicted to Porsche, and I can't stop loving Porsche, so I started this blog. My favorite cars are 911 Carrera (991.2), 911 Carrera Cabriolet (992.1), and 911 Carrera T (992.1).
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