Porsche Confirms Long-Term Forecast

Porsche had a decent start in the second quarter and said it “is pleased with how demand continues to develop in almost all regions. Only in China has the current demand for exclusive products remained subdued across all markets, both for consumer goods and for cars. Despite the prevailing challenging macroeconomic environment, Porsche AG stands by its forecasts, provided that the macroeconomic circumstances do not deteriorate significantly. For the whole of 2024, the company expects a Group operating return on sales in the 15 – 17% range. This projection is based on Group sales in the ~ €40 – 42 billion.”

“In the medium term, Porsche is standing by its forecast of a Group operating return on sales of ~17 – 19%. In the long term, the sports car manufacturer is aiming for a Group operating return on sales of more than 20%,” Porsche said.

The Wild Red Colored Card here is China of course. There is a growing trade war with Beijing in the U.S. and potentially other major markets. The European Union looks like it will levy higher tariffs on Chinese EVs, with an announcement due next week. China has already said it will retaliate.