Luxury carmakers rev up profits

8th December 2004, Comments 0 comments

8 December 2004 , STUTTGART - Despite signs of a global economic slowdown, two of Germany's leading luxury carmakers - Porsche AG and BMW AG - have said they are off to a strong start to their new business years.

8 December 2004   

STUTTGART - Despite signs of a global economic slowdown, two of Germany's leading luxury carmakers - Porsche AG and BMW AG - have said they are off to a strong start to their new business years.

While Porsche chief Wendelin Wiedeking said on Wednesday he was confident of again of the sports carmaker showing "decent earnings power", BMW reported its 10th month in a row of rising sales in November.

At a press conference discussing Porsche's outlook after a record- setting 2003-2004 year which ended 31 July, Wiedeking said he was confident about being able to maintain its business momentum.

"We will again be able to assure a decent earnings power in the current fiscal year," he said.

Porsche would be able to profit from its forward strategy in hedging itself against currency risks, an important factor for a company in which North America is the chief foreign market, Wiedeking said.

The prediction about further earnings growth came after the Porsche group pre-tax profit in 2003-2004 came to almost EUR 1.09 billion, up 16.6 percent from the previous year. The post-tax surplus came to EUR 612 million, up 8.3 percent.

The company noted that the after-tax result equated to EUR 38.80 profit-per-share, up from EUR 35.20 in the 2002-2003 fiscal year.

Ahead of Wiedeking's press conference, Porsche reported that in the August-November period, the first four months of the 2004-2005 year, new car sales reached 23,546, up 7 percent from a year earlier.

Group revenues, at EUR 1.98 billion, were 4 percent higher than in the August-November 2003 period.

Porsche said its most important model remains the sports utility vehicle Cayenne, with four-month sales in the new fiscal year reaching 13,011, up 15.2 percent.

Sales of the classic 911-series sports car came to 8,452 in the August-November period, up 18.6 percent from a year earlier.

But sales of the Boxster plunged 46.7 percent to 1,916 with the company attributing the drop to customers holding back while awaiting the 27 November launch date for the latest version of the car.

The further growth comes atop record-setting 2003-2004 business year ending 31 July when the company posted 13.9 per cent revenues growth, to EUR 6.36 billion, car sales surged 15 percent to 76,827 and production gained 11.3 percent to 73,284 cars.

Of the 2003-2004 year sales, those in North America accounted for 31,356, up 8 percent from the previous year. Sales to all other export markets reached 33,295, up 39.4 percent, while those in Germany itself gained by 3.9 percent to 12,176, Porsche said.

Meanwhile, BMW said car deliveries increased 7.3 percent year on year in November to 104,425 units helping the Munich-based automaker to keep the pressure up on its key rival the German luxury car group, Mercedes Benz.

BMW said sales for the first 11 months totaled 1.09 million vehicles, up 8.6 percent from a year ago and nearly matching its total for all of 2003.

"With these figures, our goal for the year of increasing our sales by a high-single-digit percentage at group level is now within our reach," said marketing chief Michael Ganal.

[Copyright DPA with Expatica]


Subject: German news 

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